NO LUXURY TAX IN RUSSIA

The government did not support a luxury tax. The draft conclusion states that the tax is contrary to the Constitution - it can lead to double taxation of citizens' property. The government also proposes not to introduce a separate article in the Tax Code for luxury goods, but simply to amend the articles on real estate and vehicles. According to the bill introducing a luxury tax, an additional tax is required for the purchase of high-priced residential buildings, apartments and land. The bill was introduced by deputies from the Spravedlivaya Rossiya party Sergei Mironov and Oksana Dmitrieva.

According to the government's draft opinion, luxury goods are subject to other taxes. "The implementation of the proposed changes in the draft law will lead to double taxation of property," the draft conclusion says.

The government also criticized the wording regarding the cost of luxury goods. The bill states that luxury property includes real estate worth 30 million rubles or more, but it is not clear whether real estate worth exactly 30 million rubles can be attributed to it. The bill states that only those vehicles that are purchased in Russia can be classified as luxury. The government points out that this contradicts the current Tax Code, which "enshrines the inadmissibility of establishing differentiated tax rates depending on the place of origin of capital."

The government has questions about the market value of luxury properties. The draft law does not specify a mechanism for the tax authorities to obtain information on the market price of goods. The terms of tax payment are not indicated in the document. The government believes that the solution to the problem is not the introduction of a separate tax on luxury, but changes in the Tax Code in the articles relating to real estate and vehicles.