Home  Journals  Finance and Credit  31(463) - 2011 August

Improving collection of the personal income tax in the Russian federation at the present stage

Available online: 22 August 2011

Subject Heading: TAXES AND THE TAXATION

JEL Classification: 

Since personal income tax (PIT) is one of the main taxes on individuals in modern Russia, tactical changes in the current legislation are required for more effective financial and social application of the given tax. In this paper various aspects of the procedure for PIT computation and collection in the Russian Federation are analyzed via economic methods, most effective ways of changing the procedure of applying standard tax deduction and basic tax rate are identified. It is concluded that the increase in standard deduction per taxpayer and simultaneous 3% increase of PIT marginal rate are required in order to enhance PIT fiscal and regulating function. Calculation of economic effect of the proposed tax law changes is provided.

Keywords: personal income tax, revenues of the consolidated budget of the Russian Federation, progressive taxation, standard deduction per taxpayer, non-taxable minimum

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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