Putin Proposed Raising Income Taxes for Annual Earnings over 5 Million Rubles

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Russian President Vladimir Putin has proposed raising the income tax rate for citizens with incomes above 5 million rubles per year from 13 to 15 percent. The president’s address was televised by Russian TV channels, and posted on the Kremlin website. Tax will be levied on incomes above 5 million. According to him, this will generate 60 billion rubles per year. This money is proposed to use to treat children with rare illnesses and purchase medical equipment. According to experts surveyed by Radio Liberty, tax increases will affect less than one percent of the Russian population. According to Putin’s proposal, the tax will be raised from January 1. Prior to this, the tax rate on personal income has not changed since 2001. The president has repeatedly publicly opposed the abolished flat scale. In addition, Putin promised to repeat in July payment to Russian families in the amount of 10 thousand rubles for children under 16. Those who received the June payment for children will receive a new one automatically, the president said. Putin also said that previously taken measures to support Russians who were left without work during the pandemic will continue to stay in force in July and August. In addition, he proposed expanding the program of preferential mortgages and payments to social workers. Putin promised IT companies tax cuts. Russian residents who own foreign companies are offered a flat tax rate. Moreover, Putin promised large-scale investments in infrastructure projects, road construction and public transport renewal.