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Medvedev fast tracks Putin's luxury tax

11:56 14/05/2013

MOSCOW, May 14 (RAPSI) - Prime Minister Dmitry Medvedev has decided to introduce the new luxury tax sponsored by President Vladimir Putin two weeks earlier than planned, Gazeta.ru reports on Tuesday, citing the government's website.

The prime minister instructed the Finance Ministry and the Economic Development Ministry to make amendments to the legislation so as to allow the government to introduce the new tax by October 15.

During the president's Q&A session with the public three weeks ago, Putin said that the tax should be introduced by November 1, and called it a matter of social justice. The Finance Ministry has already drafted amendments to raise taxes on excessive consumption - on vehicles and property.

Cars with an average value of more than 5 million rubles will be qualified as luxury items. Owners of cars which are less than five years old and cost between 5 and 10 million rubles will pay a double tax rate; 10-15 million ruble cars less than 10 years old, or cars worth over 15 million rubles and less than 20 years old will be subject to a triple rate tax.

The exact rate will be up to regional governments, which will have the power to lower or raise it, but no higher than tenfold.

The Finance Ministry has also proposed raising the tax on properties with a cadastral value exceeding 300 million rubles ($9.6 million). Cheaper properties should be taxed 0.1%, and land 0.3%, the ministry said. However, if an individual owns property with an overall value exceeding 300 million rubles, the property should be taxed 0.5% and the land, 1.5%. If a house or a construction project alone is valued above 300 million rubles, the owner will have to pay a tax of 0.5%-1%, according to the ministry's bill.

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Medvedev fast tracks Putin's luxury tax

11:56 14/05/2013 Prime Minister Dmitry Medvedev has decided to introduce the new luxury tax sponsored by President Vladimir Putin two weeks earlier than planned. During the president's Q&A session with the public three weeks ago, Putin said that the tax should be introduced by November 1, and called it a matter of social justice.
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