Tycoons are rubbing their hands in satisfaction.
VLADIVOSTOK. April 28. VOSTOK-MEDIA – The State Duma has for the second time voted down the luxury tax bill submitted by A Just Russia political party.
Tycoons are rubbing their hands in satisfaction. From now on, when buying diamond necklaces, yachts, planes, upscale housing, they will fork out to the government the same amount of money as ordinary Russians, who buy commodities far from being luxurious. It is generally known that redistribution of incomes between rich and poor, primarily through taxes, is the only solution of the major problem of Russia – social inequality.
In 2007, A Just Russia had already submitted the proposal to introduce a luxury tax to the Parliament but the bill was voted down by the majority of Duma members on the grounds that it would impose double taxation, Zhizn daily quoted Oksana Dmitrieva, the deputy head of A Just Russia, as saying. “Unfortunately, the second attempt has also been unsuccessful. The lawmakers said the bill is just outside the legal environment.”
Sergei Mironov, the head of A Just Russia, said the luxury tax has an advantage over income tax. “It’s easy for some to hide their incomes but it’s not so when they buy a Boeing or Bentley and it makes no sense hiding it,” he said. While Russian lawmakers were debating about whether tycoons should be imposed additional taxation or not, a similar bill has been passed by the Ukrainian Government.
“Imposition of a luxury tax would fill up the budget as well as ensure social stability,” Ukrainian Deputy Prime Minister Sergey Tigipko said.