The government is trying to find a way to raise property taxes without incurring the wrath of its citizens by ensuring that a tax hike does not affect benefits and exemptions provided to certain groups of low-income citizens, Vedomosti reported.
The topic was addressed during a meeting chaired by First Deputy Prime Minister Igor Shuvalov last week. As part of ongoing efforts to fill state coffers, the government switching to a property tax based on cadastral value, which is closer to the actual market value of a property.
"If the property of tax exempt people — for example, veterans, pensioners, Chernobyl survivors — is not currently taxed, then after the introduction of taxes this should not change," Shuvalov said.
The introduction of property taxes had been impeded by defects in the cadastral register, federal officials said. This delayed any discussion on the issue of tax benefits, Deputy Finance Minister Sergei Shatalov said.
The week before the meeting, Shuvalov instructed the relevant ministries to determine the permissible tax rates for different categories of citizens, his spokesman said. Specifically, taxes should not increase for citizens currently living in low-income housing. Tax breaks will take the form of social deductions, which will be implemented at the federal level. Additional subsidies will be provided at the regional and municipal level.
The notion of adopting cadastral value for property taxation in 2014 was broached by President Vladimir Putin in 2012. Current property tax revenue is extremely low. In 2012 only 15.8 billion rubles were collected.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
