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Russians Support Luxury Tax, Doubt Effectiveness – Poll

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The majority of Russians supports a proposed luxury tax but doubt that it is would be effective, state-run pollster VTsIOM said on Tuesday citing results of a survey conducted in February-March.

The majority of Russians supports a proposed luxury tax but doubt that it is would be effective, state-run pollster VTsIOM said on Tuesday citing results of a survey conducted in February-March.

The public poll involved 1,750 respondents from seven major cities across Russia. Targeted groups were divided into “upper,” “middle class” and “low income” categories.

Seventy percent of the respondents, mainly from the middle class and low-income groups, said they were ready to support the new initiative.

At the same time, most of the respondents expressed doubts about the effectiveness of the new tax, citing heavy economic differentiation of the regions and inevitable loopholes in the legislation.

In addition, 48 percent of the respondents share fears that the luxury tax would result in double taxation as real estate owners would be forced to pay both property and luxury taxes.

Prime Minister and president-elect Vladimir Putin proposed in January raising taxes for people who own luxury apartments, valuable land, planes, yachts and luxury cars from 2013.

Finance Minister Anton Siluanov confirmed in February that the luxury tax would be collected through real estate and transport taxation.

 

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