The Russian government is considering the implementation of a new progressive tax system that would require wealthy individuals to pay higher income taxes. Currently, Russia has a flat personal income tax rate of 13%, with incomes over 5 million rubles ($56,100) per year taxed at a flat rate of 15%. However, the Ministry of Finance has proposed a new system where those earning below 2.4 million rubles would pay a 13% tax rate, while those earning between 2.4-5 million would pay 15%, and so on up to a 22% tax rate for those with incomes over 50 million rubles.
According to Finance Minister Anton Siluanov, only around 3.2% of the Russian workforce would be affected by this tax increase, as the majority of people earn below the threshold. The Ministry estimates that this new tax system could generate an additional 8.3 billion rubles ($93.1 million USD) for the country’s budget in the first year. The proposal will need to be passed by parliament and approved by President Vladimir Putin before it can take effect.
Meanwhile, data from consulting company Frank RG shows that Russia has seen an increase in the number of super-rich individuals with assets over 500 million rubles. However, many of their assets are still held outside of the country, which raises questions about how much contribution they are making to Russia’s economy. This new tax system aims to ensure that these wealthiest individuals contribute more to the country’s budget.
In other news, advancements in long-range wireless charging for drones have been made, and Hansi Flick has been appointed as FC Barcelona’s coach. Additionally, Egypt has sufficient wheat stock for the next five months which is positive news for its food security concerns amidst global shortages.
Overall, these developments highlight not only Russia but also how diverse range topics are shaping our world today including technology advancements in long-range wireless charging for drones and appointment of coaches in sports but also changes being made towards ensuring that wealthiest individuals contribute more to national economies through progressive taxes systems like Russia’s proposed new one.
