Page 71 - RusRPTAug21

The newspaper states that the government has not clarified which specific measures would be used – it is still under discussion. However, Vedomosti sources note that such changes in taxation were discussed with respect to the introduction of new strategic projects that should be included in the new economic development program until 2030. The key spheres of investment are: new high-tech economy, aggressive infrastructure development, new social contract, client-centric state, and national innovative system. The Ministry of Economic Development chose 38 initiatives worth RUB3.8trillion.
More details were unveiled on the Russian government's fine-tuning of the tax regime for the next several years that were discussed in early July, Forbes and Izvestia reported yesterday, 8 July. The government plans to collect an additional RUB 400bn (0.4% of GDP) in tax revenues per year. The news reports include details on several options that are related to higher taxation of the population.
One of the options is raising the salary threshold for social contributions. Currently, employers pay 22% to the pension fund if the employee's salary is less than RUB 1.46mn/year ($19,550) or RUB 122,000/month ($1,633). Should it exceed this level, the employer pays 10% on the salary in excess of the threshold. According to Izvestia, MinFin might look to raise the threshold by 2x to RUB 3mn/year. Izvestia also reported that about 7% of Russians, 5mn people, earn more than the current threshold and it will likely affect larger companies with highly-skilled workers. Overall, such a measure should bring nearly RUB16bn in 2022 and RUB45bn in 2024.
Another option for collecting higher tax revenues could be the introduction of a special tax for those who hold real estate worth more than RUB500mn. These individuals should pay 0.3% of the cadastral value per year. Currently, wealthy people pay 0.1% of the value of their assets on houses, apartments, and garages; non-residential premises are rated at 0.3%. Real estate assets that are alone worth more than RUB300mn could be taxed at 2%. The measures could bring RUB50bn in additional tax revenues per year, according to Forbes.
Higher excises on alcohol (by 10% from current rates) and sugar-containing soft drinks (new) could bring another RUB100bn in the next three years. MinFin also proposes raising the import tariffs on online shopping from foreign marketplaces: the current exempt limit is EUR 200 and it could be lowered to EUR 100, bringing an additional RUB 20bn.
Finally, telecom operators might pay 2x higher fees for frequency spectrum payments, that could add RUB 22bn in revenues per year.
In an effort to add 400 billion rubles ($5.4 billion) to the budget by 2024,
the Ministry of Finance plans to raise a quarter of that figure through a tax increase on wealthy Russians. Forbes Russia learned more about the details of the proposals, which were sent to the budget commission at the beginning of the month. Russian employees making more than 122,000 rubles ($1,643) currently have 22% of their salary withheld by their employer for the state pension fund for the first 1.46 million rubles ($19,666) earned, and for every ruble over that amount have only 10% withheld. The Ministry of Finance is considering raising the threshold. Additionally, the ministry is considering
71 RUSSIA Country Report August 2021 www.intellinews.com