03.12.08

The bill, “On Amending Part One and Two of the Tax Code and other Legislative Acts of the Russian Federation” was discussed on November 21, the news agency Regnum reported. A State Duma deputy, Sergei Shtogrin, representing the Communist Party, argued in favor of the bill, saying that personal income tax deductions are currently to low. Russian law allows for a "standard deduction." Shtogrin commented, of 400 rubles. "What is 400 rubles?" he continued, "13% (Russia's standard tax rate) of 400 rubles is 52 rubles. It follows that the state adds to the salary of the poorest, who receive minimum wage, 52 rubles per month, equal to two loafs of bread.”

Shtogrin noted that inflation is expected to be at 14-15% in 2008. He suggested "not levying income tax on the minimum wage, which is set at 4330 rubles."

In turn, the deputy chairman of the Duma Committee on Budget and Taxes, Andrei Makarov, said that the proposal was discussed at the profile committee meeting and did not find support. "There are no budget forecasts here," Makarov stated. "There is nothing as to how to safeguard the fall in revenues for the constituents of the Russian Federation."

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