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Russia won't alter flat income tax of 13%

Russia's government won't raise the 13% personal income tax, the first major bill President Vladimir Putin signed after coming to power.

„There are no plans to alter the tax any time soon,” Deputy Finance Minister Sergei Shatalov said today at a conference in Moscow organized by small and mid-sized business association Opora. Fair Russia, a new pro-Kremlin party, sponsored bills in parliament to enact a progressive income tax that would raise the rate to 20% for people making between 1.2 million rubles ($46,000) and 3.6 million and to 30% above that. Putin signed the tax bill slashing income taxes soon after coming to power in 2000 and it came into force on January 1, 2001, leading to a surge in government revenue and a sharp decline in delinquency rampant under the old system. (Bloomberg)