Change in the Personal Income Tax: Will It Bring Effect?

Sergey Belev – Head of Budget Policy Department of the Gaidar Institute; Senior Research fellow of the Budget Policy Department, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

No plans to raise personal income tax rates (PIT), Prime Minister Dmitry Medvedev said recently. However, this subject was until recently extensively debated and is likely to be put on the table again in the future. A rise of PIT rate can negatively affect the poorest citizens. It is envisaged to change it together with the introduction of a tax deduction amounting to the subsistence level. However, according to our calculations such change will not bring a notable fiscal effect.

Key words: personal income tax, PIT scale, PIT rise scenario.