Vladimir Putin: Increase of excess income tax rates is justified step
"I believe this is a justified, a much-needed step to improve performance and fairness of the national fiscal system," the head of state said.
It is important that flexible solutions have been managed to be found and the stimulating role of the fiscal system has been preserve for a dramatic structural upgrade of the economy, despite the challenging situation with budget revenues, Putin says. The tax burden for the non-oil and gas sector of the economy has been managed to be lowered, not merely on account of the twofold cut of insurance contributions for small and medium enterprises to 15% and also at the expense of slashing taxes for the IT sector (from 14% to 7.6%) and the revolutionary income tax reduction from 20% to 3%, the President adds.
"On the contrary, the fiscal burden on excess income, in resource sectors primarily, has increased. We are doing this step by step. In particular, this also leads to structural changes in the economy," the Russian leader noted.