Total in the first days after the election:
1. proposed to distribute part of the income tax on the profit from rich regions to the poor;
2. expected increase in contributions to insurance funds, OR the gradual increase in both VAT rates, what I wrote yesterday;
3. proposed to introduce a progressive scale of taxation;
4. today received a proposal to abolish duties in the oil industry and to raise the extraction tax;
Understand, why these sentences can be combined into a major reform, and it will call for the ordinary Russian citizen.
1. The redistribution of income between the subjects of the Russian Federation.
The proposal calls for a redistribution of the income tax in favor of the poorest regions of Russia for three years. The rate of this tax is 20% and only 2 % of it reserved for the Federal budget, the rest goes to the regions. To narrow the gap in living standards between regions it is proposed to centralize in the Federal budget 1% tax rate (regional 18%), and from this 117 billion rubles to divide into three parts. The bulk (84 billion) to send to poor regions, 20 billion is a dynamically developing entities in the form of grants for the high growth rate of the regional tax potential. The remaining 13 billion will leave the Federal budget to stimulate the governors to economic activity. We are talking about the right of regions to write in their budgets the full amount of gains tax. A redistribution of income will happen at the expense of Moscow, the oil-producing regions, and also at the expense of Saint-Petersburg and Leningrad region.
While it is sensible and appropriate proposal. Response to “Enough to feed Moscow!” chance to Omsk, for example, to fix the road. Pitfalls minimum quantity, except on the question of corruption in the field. If the money will even in just the most part to reach the goal – would be great.
2. VAT and contributions to the funds.
Yesterday I wrote that the saddest thing in the VAT increase – that is paid by the end consumer. If the end user is the physical person purchasing the products in the store, it will feel the increase of prices for yourself.
In addition, these changes do not affect the viability of small business, but it became clear from yesterday’s discussions, the attempt to introduce it into the Russian reality, has failed. People more profitable to go “to the factories” – and it is more profitable and cheaper budget.
3. Progressive scale of personal income tax.
This is one of the most controversial for the Russian realities of the proposal. Progressive scale implies higher interest rates depending on earned income. For example, the Russian person is familiar with such a scheme:
This method of taxation allows to equalize opportunities classes without compromising the budget and the taxpayers. The system is fair, but if the poorest people rate, for example, 0%, and for the rich not 50% like in some European countries. Why this system is not applicable with us? Because of the high risk of financial fraud, tax evasion, shadow wages, etc. Maintenance control of normal and increases in the General level of financial literacy and secular culture – the necessary components that must accompany such a scale.
4. Met.
Kommersant writes the following:
“In 2016 increases the mineral extraction tax and reduced the fee in 2017, the severance tax will be 30%. The Finance Ministry proposes to completely remove duties on oil in 2018, to replace them with the added tax income (JPM), and proportionately to increase the met. With the abolition of duties, to be cancelled, and all subsidies, and the object of taxation will be the whole of the country’s oil and not just exported.
As reported by “Kommersant”, the new tax regime in the oil industry — PDM — can be passed this year, but it will work in 2018. Its implementation will give the Ministry the opportunity to abolish the export duty on oil, which can bring a budget of about 600 billion rubles of additional revenue.”
And here is the change – the most amazing. Because, on the one hand, high tax on oil is exactly what so zealously sought in his best years, opposition leader Alexei Navalny resources people. Even though we don’t give each an oil rig, the proceeds from the sale of resources and use of mineral resources will replenish the budget. BUT! Who will pay for othvachennyh companies a cut of the profits? Right! The end consumer! Just imagine how much it will cost gasoline, and you cannot take a deduction for reduction of the base for personal income tax…
Total, in parallel with the reform of the taxation of the oil market, it is necessary to restructure the system of Antimonopoly regulation. Only in the case that the state will adequately control all the price changes, not allowing to compensate losses at the expense of the Russian people.
Let me digress a bit and say, whereby companies extracting and processing oil, will be able to offset the decline of the ruble net profit: due to the rise in the currency. And unfortunately, based on the actions of the Central Bank, which nicely managed to keep the ruble in August-September, we still get the jump in the cost of the currency basket (separate hi I want to transfer 200-and 2000-ruble banknotes). Therefore, all actions aimed at changing the tax law is great. But what is coming in the area of exchange rates, is vague and somehow creepy.
All this is a really huge transformations that drastically can change the quality of life in the country. And, surprisingly, for the better. Two if:
if corruption will be minimized
if control over the price level will be at the proper level.
