NATALIA KORNIENKO: “A MORE IN-DEPTH ANALYSIS RATHER THAN SOCIOLOGICAL SURVEY IS NEEDED BEFORE TAKING A DECISION ON INCREASING TAXES”

In an interview to the Komsomolskaya Pravda Radio Station, Natalia Kornienko, Head of the Fiscal System Development Department, Gaidar Institute commented on the news that more than 50% of the Russians approved the idea of increasing taxes for the sake of the poor. In Natalia Kornienko’s view, more in-depth analysis, rather than a sociological survey is needed before taking a decision on increasing taxes.

Over 50% of the Russians approved the idea of raising taxes in order to increase social support to needy citizens, the Izvestia daily reports. This is proved by the outputs of the survey carried out by the VTsIOM (All-Russian Public Opinion Research Center). This idea was supported by 54% of the respondents. Such a scenario suggests the expansion of the list of free services, including those in education, health care and security and was largely supported by the representatives of the senior age group (60-year-olds and plus).

“The survey covered only 1,600 persons. Also, as it is unknown in which circles and where the sociological survey was carried out, it cannot be regarded as trustworthy. A more comprehensive analysis is needed in order to initiate the introduction of a higher tax burden on individuals’ incomes. In this particular case, the VTsIOM’s survey forms households’ incorrect perception of the tax system,” Natalia Kornienko notes.

“Russia has already introduced progressive tax rates; individuals’ income of over Rb5 mn a year (about Rb416,000 a month) is taxed at the rate of 15%. However, we do not know what duties and responsibilities individuals who are paid as much are entrusted with. Probably, such wages and salaries are quite justified if responsibilities of such workers are really serious and they have to work 24 hours a day. Increased tax rates amid the ongoing pandemic are a heavy burden. The situation in the South-East Asia and India is currently particularly dramatic. India is a supplier of lots of primary products and if the pandemic situation does not change for the better it may result in adjustment of prices of goods supplied to Russia,” Natalia Kornienko summed it up.