Mishustin proposed to raise taxes by 22 percent

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

Some media reports are difficult to understand even for experts. Whether it is true or fake that Prime Minister Mishustin, who is sick with coronavirus, proposed to raise all taxes by 22 percent, is even more difficult to understand if you read dubious reports in the opposition press.

Where did the number "22" come from?

For the first time, the notorious figure was sounded not from M. Mishustin, but from the Minister of Finance of Russia A. Siluanov. In his speech at the Russian Business Week on March 13, 2017, organized by the Russian Union of Industrialists and Entrepreneurs, he did not offer to raise, but announced the intentions of the tax department to increase the value added tax (VAT) rate.

Instead, he recommended lowering insurance premiums for entrepreneurs. Anton Siluanov expressed confidence in the advisability of raising the indirect tax by 22 percent and simultaneously reducing the value of the aggregate rate of insurance premiums that are paid both for themselves and for employees.

True or fake - obviously. In his speech, the Minister of Finance spoke about the calculations carried out specifically at the suggestion of the tax department, and the adoption of an optimal decision that does not damage the budget, but compensates entrepreneurs for the new value of VAT.

The Ministry of Finance has proposed not to raise the value added tax for the life-supporting industries, finance, medicine, education and the agricultural sector. The decision to reduce the amount of insurance premiums, since they are unaffordable for entrepreneurs and are among the highest in the world, is prompted by the desire to stop the outflow of non-payers into the gray zone.

The discussion of the topic was long-standing; M. Topilin, the head of the Ministry of Labor and Social Development, opposed it. They talked about a one-time rise in inflation and prices if the VAT was raised. Other options were proposed - 20:22 and 21 by 22 percent.

The surname Mishustin probably arises because quite recently he headed the tax department, which initiated a project to reduce the tax burden on entrepreneurs. But these two events took place with an interval of three years.

Where did the version of the increase in all taxes come from?

A. Siluanov's initiative was announced back in 2017, and at the same time the Russian President made a statement on reforming the tax system. As part of the work on the reform, the Chairman of the Accounts Chamber of the Russian Federation A. Kudrin did not rule out that it is possible to raise taxes on personal income and make the rate proportional to pension contributions.

However, Siluanov said that it had already worked until 2000 and had not shown any efficiency.

And on February 25, 2020, the Svobodnaya Pressa publication, skillfully using figures for a drop in imports and exports (due to the exacerbation of the situation with the coronavirus, then still localized in China), expressed the views of some analysts. The emphasis in the publication was made on the fact that allegedly "the authorities will once again clean out the pockets of the poor," and the headline began with the words "Mishustin's plan."

Further, there was no mention of what the newly appointed Prime Minister proposed, but the opinion of some experts, called by the publication "leading". Analysts were outraged by the need to finance the social programs of the President of Russia and taxation of export companies.

In their opinion, they already do not benefit from the fluctuations of the ruble, the fall in oil prices and the lack of a global conjuncture. However, it was about the fact that some companies are in a privileged position, and this tax needs to be unified.

The aggregator "Rambler / Novosti" reposted another publication of the joint venture, in which it was stated that "Mishustin will shake up all but the oligarchs close to the Kremlin."But even that was long before the government decided to tax large transfers of funds offshore and remove taxes for the second quarter for industries affected by the coronavirus.

Summarize

1. So far there are no grounds to assert that Mishustin proposed to raise all taxes.
2. Information about this is either inaccurate or outdated.
3. The VAT rate has been raised for a long time.
4. The progressive scale of taxation has already been applied and has not justified itself.
5. If any decisions are made, it will not be until the end of the coronavirus pandemic.