Russia's Finance Ministry Proposes Progressive Tax Rates and Mineral Extraction Tax Hikes

The finance ministry of Russia has proposed changes to the tax code, introducing extra progressive income tax rates for high earners and increasing the mineral extraction tax for producers of fertilizers and iron ore. These changes will be a key discussion point at the central bank's upcoming rate-setting meeting.

The finance ministry's proposed changes to Russia's tax code give "significant additional information" on fiscal policy and aggregate demand that will be an important discussion point at the central bank's June 7 rate-setting meeting, Interfax quoted the bank as saying on Wednesday.

Russia’s finance ministry on Tuesday proposed introducing extra progressive income tax rates for those earning more than 2.4 million roubles ($26,810) annually, as well as raising the mineral extraction tax for fertiliser and iron ore producers.

($1 = 89.5205 roubles)