Luxury tax in the Russian Federation

27.02.2012 Stanislav Voskresensky, the Deputy Head of the Ministry of Health of the Russia Federation, declared that next year luxury tax can be imposed on real estate, the area of which is from 1 thousand sq. m., but the physical persons property tax could be already increased. He informed that at present the ministry prepares corresponding propositions.

According to the head of the Economic Development Ministry, Elvira Nabiullina's, the ministry plan is to impose the tax only on one premise: the area of all apartments’ composition which are in the property of an individual, won't be implement. But this possibility isn't excluded subsequently.

The minister noticed that she can’t give information concerning how much the rate will grow, but probably it will depend «on some proportion of apartments or people». This tax can't concern more than 10 % of the population.

Expert’s opinion

Sumptuary tax imposition in Russia can lead a number of problems: first, it is necessary to establish criteria of luxury definition, secondly, at its charge to have documentary confirmed market project cost of the taxation and, thirdly, the registration of the property outside of the country should be excluded or as much as possible complicated. At default at least one of these three points tax introduction will be senseless.

We believe that least new tax will concern "richest" as the most expensive actives are held abroad. It is impossible to oblige the owners of yachts, planes, real estate which is registered abroad, to pay the tax in the treasury of Russia.

Meanwhile, the luxury tax already successfully exists in many developed countries. Moreover, during crisis "epoch" many states by means of luxury tax introduction try to correct the economic situation. How this luxury tax will be apply in practice in Russia, there is difficult to say, for quite often it turns out «mean well …».

On the basis: http://rg.ru/

Lomakina Irina ( The director of Moscow office of Honest & Bright company)