Head FNS has told, under what conditions it is possible to cancel income tax for the poor
The head of the Federal tax service (FTS) of Russia Daniil Egorov made the abolition of income tax for the poorest citizens, but only if the budget system of the Russian Federation will remain balanced.
"If we talk about non-taxable minimum, it is necessary to proceed from the possibilities," said Egorov in the program Vladimir Pozner, answering the question of the abolition of personal income tax for citizens, whose incomes do not exceed the subsistence minimum. He recalled that income tax revenues replenish the budgets of the regions. "If we can afford this model of taxation is, of course, it would be nice. But the question is - can we afford it. It is necessary to proceed still from a balanced behavior," he said.
Increased taxation for the rich and the introduction of a progressive scale, according to him, also requires careful evaluations, because this decision will entail additional costs both for budget and for taxpayers. "If you do this carefully enough and balanced, it is possible that this will work, but you need to understand what costs we will incur," said Egorov. He explained that in this case, the citizens will have to declare their income and to submit declarations to the tax office and for many it will be difficult.
Now Russia has a flat rate personal income tax: taxpayers pay 13% tax, regardless of the amount of income received. And in most cases the tax is not paid by the citizens themselves, its keep tax agents – for example, employers with salary payment.
"It seems to me that people in filling of declarations are clearly not professionals," - said Egorov. Most of them will have to use the services of tax consultants. In addition, the taxpayers in this case have requested to save money for taxes at the end of the tax period, as is the case in countries with progressive taxation.
In addition, the flat scale of taxation, according to Egorova, is a competitive advantage of Russian jurisdiction. "People earning the most, have the highest mobility. And the government has to choose: on the one hand we say that we want justice and a higher tax rate for them. On the other hand, we must understand that States are competing for the rich too, because it is the formation centre of vital interests, investment in the economy, and therefore also more taxes," - said the head of the FNS.