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Fair Russia Fights Luxury
The Fair Russia lawmakers forged a new draft chapter for the RF Tax Code, The Luxury Tax, and presented it to the State Duma, the negative conclusion of government notwithstanding.
”For superior purposes of good morals and public welfare, it is necessary to oppose exorbitant development of luxury by narrow stratum of Russia’s society,” says the explanatory note to the bill. A new luxury tax will be paid by both individuals and corporations, so that the property couldn’t be written off from individuals to entities.
The idea is to charge the luxury tax from three kinds of property – real estate, vehicles and jewelry. For purpose of higher justice, of course, the owners of real estate, cars, yachts and jewelry are expected to appropriate to the government between 1 percent and 5 percent of the worth of their belongings. This legislative effort of Fair Russia is quite in line with its pre-election promise – fighting for narrower gap between the rich and the poor.
The government’s assessment of the new initiative is clearly negative, as it will lead to the double-taxation here. Indeed, under the RF Tax Code, the taxes are already imposed on real estate of corporations and on houses, flats, garages, summer cottages of individuals. The vehicles both of individuals and corporations as well as allotments are not exempt from taxation either.
So, jewelry and works of art are the only things free from the government’s taxes now. But the deals with them are not registered with the state bodies, so there is no way to impose taxes actually.
www.kommersant.com
All the Article in Russian as of June 04, 2007
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