Siluanov spoke against the revision of taxes on «luxury property»

© RIA Novosti / Alexei Druginderal in fotomancer of Finance of the Russian Federation Anton Siluanov. Archival photoSiluanov spoke against the revision of taxes on «luxury property»© RIA Novosti / Alexei Druginderal the image Bank

The Finance Ministry would not revise the tax on «luxury property», reported in the program «Posner» on channel one head of Department Anton Siluanov.

Earlier, several media outlets incorrectly quoted the Minister stating that the Ministry of Finance plans to revise luxury tax upwards.

According to the Vice Premier, the difference in income creates social tension. «We often say, let’s raise taxes on the wealthy. In fact, we did: raised taxes on luxury property, cars, yachts, apartments, and so forth,» — said Siluanov.

The Finance Minister added that the proposals to make a more progressive scale of taxation of income is «pros and cons». «We know that the rich people are clever and will find ways to circumvent this decision, people including can generally withdraw money from our country. On the other hand, the flat rate of 13 percent is already established, and here to change the law, it would probably be wrong,» — said the Minister.

«So we’re talking about that we need to pull up wages and pensions,» — said Siluanov.

Discussion about raising the tax burden for the rich is not the first year. Various options were considered: from a return to the progressive scale of personal income tax, to the imposition of excise taxes on expensive goods. However, the MOF has traditionally been against such measures, because, according to the office, they are complex to administer and lead to the creation of schemes to avoid paying taxes.

The tax on property of physical persons already contains a differentiation that depends on how much the taxable estate. At the same time now for the owners of a transitional period of five years, during which reduction factors are applied to the calculation of tax. Fully tax the owners will pay only from 2020.

The increased tax is also levied on luxury cars worth more than three million rubles.