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04 / 10 / 2023
New bill introducing a progressive personal income tax scale
On October 3, 2023, a group of deputies from the LDPR faction introduced Bill No. 450126-8 to the State Duma (https://sozd.duma.gov.ru/bill/450126-8), pursuant to which it is proposed to amend Article 224 of the Tax Code of the Russian Federation and establish a progressive personal income tax scale.

The tax rate will range from 0% to 35% depending on the amount of the individual’s income:

The explanatory note to the bill also stated that, if necessary, to eliminate the disparity in tax revenues to the budgets of the constituent entities of the Russian Federation, payments should be credited to the federal consolidated budget and then distributed evenly among the regions.

The Government of the Russian Federation once again did not support the bill introducing progressive personal income tax rates, explaining its position rather sparingly:

“The current personal income tax system allows us to speak of a balanced approach that takes into account the interests of both taxpayers and the budget system of the Russian Federation.”

The Government of the Russian Federation also referred to its earlier position that introducing a progressive personal income tax scale is not expedient.


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