Progressive personal income tax to apply to 3% of Russians - PM

MOSCOW. Aug 6 (Interfax) - The progressive personal income tax of up to 22% will apply to only 3% of working Russians and will help support tens of millions of needy citizens, Russian Prime Minister Mikhail Mishustin said.

Mishustin mentioned the recent tax amendments, including the reduced fiscal burden on low-income families with two children or more, at a meeting with Federal Tax Service head Daniil Yegorov.

"This is about families with two or more children and average per capita income below the 1.5-fold subsistence minimum. They are entitled to a partial refund of the personal income tax paid in the previous period in the amount of up to 6% of the maximum personal income tax rate," Mishustin said, adding this does not include education and healthcare benefits such families could receive.

The process needs to be administered, Mishustin said. "Of course, we must keep the budget balanced and preserve incentives for developing the economy in general during such adjustments," he said.

The shift to the progressive personal income tax of up to 22%, depending on the income, will apply to only 3% of the working population, Mishustin said. "Yet this will allow us to support tens of millions of those who really need assistance of the state," he said.