Kremlin spokesman Dmitry Peskov on Tuesday dismissed Russian Accounts Chamber head Alexei Kudrin's criticism highlighting the economic effects of increasing income taxes for high earners from 13 to 15 percent, stating that the extra money will be used to provide treatment to children with rare diseases, an endeavor he said was more important than any possible economic outfall
MOSCOW (Pakistan Point News / Sputnik - 14th July, 2020) Kremlin spokesman Dmitry Peskov on Tuesday dismissed Russian Accounts Chamber head Alexei Kudrin's criticism highlighting the economic effects of increasing income taxes for high earners from 13 to 15 percent, stating that the extra money will be used to provide treatment to children with rare diseases, an endeavor he said was more important than any possible economic outfall.
"I want to recall that there is a much more important meaning than the economic one. President [Vladimir Putin]'s initiative was to color this money and use it to provide medicines to children with rare diseases. This is much more important than the economic sense, but at the same time, there is an economic sense too," Peskov told reporters.
In late June, Putin proposed abolishing the flat personal income tax rate starting on January 1, 2021, and increasing its rate from 13 percent to 15 percent for incomes exceeding 5 million rubles ($70,380) a year. The leader noted that the funds from increasing personal income taxes will be directed toward treating children with rare diseases.
