Russian Econ Ministry proposes lowering payroll insurance rate to 28% in 2014
MOSCOW. April 3 (Interfax) - The Russian Economic Development Ministry proposes lowering payroll insurance contributions from 30% to 28% in 2014 and to lower the threshold, for salaries in excess of 512,000 rubles per year, to 5% from 10%, Economic Development Minister Elvira Nabiullina told reporters.
"Our baseline variant is to lower the insurance tax rate to 28% [from 2014] and the threshold to 5%. The threshold shouldn't be raised as that would increase the burden on hi-tech firms," she said.
These are still working proposals and calculations and discussions are still being made, she said.
As for the so-called luxury tax, Nabiullina said transport tax for cars with engines of over 300 hp. might be introduced, she said, adding that the ministry did not yet plan to take the age of an automobile into account when imposing the higher tax.
As for higher real estate tax, this might be introduced for property with overall floor space of more than 1,000 square meters and might be 50% higher than the existing standard tax.