Russia’s finance ministry has called for an additional 10% social tax for high earners from 2012 and also wants to introduce a unified property tax in 2013. The new taxes would enable the country to finance its infrastructure, military and social spending needs and still run a balanced budget.
Natalia Orlova, chief economist at Alfa Bank in Moscow, says that although the proposed tax on rich Russians will be relatively easy to introduce, the mooted property levy might be trickier to implement.
At present, the overall taxation burden on Russian households is low by international standards, with personal income tax contributing 4% of GDP to the budget, and other household taxes (real estate, land, personal car) just 0.4%
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
