Revenue conditions: budget revenues from personal income tax record growth
Receipts to the consolidated budgets of Russian regions from personal income tax (PIT) for the first ten months of 2024 increased by a third and exceeded RUB 6 trillion. Such growth is a record for the entire time of monthly statistics, "Izvestia" found out. Transfers of the so-called tax on the rich, which is paid at a rate of 15%, also showed outstripping rates. The main reason for the trend is the accelerated growth of wages. The higher the receipts from individuals, the more stable the budget. What will change in 2025 after the tax adjustment and the introduction of a five-stage personal income tax scale - in the material "Izvestia".
How much collected personal income tax in Russia in 2024
In Russia, revenues to the treasury from personal income tax are actively growing. In January-October, the revenues of the consolidated budgets of the subjects from them (where the bulk of the collection comes - at a rate of 13%) increased to 6.1 trillion rubles - this is 27% higher than the same period last year, according to the statistics of the Federal Tax Service ("Izvestia" studied it).
This increase in personal income tax revenues turned out to be the largest for 12 years - for the entire time of monthly statistics. Until 2012, it was calculated annually. "Izvestia" sent an inquiry to the tax service.
In addition, personal income tax revenues to the federal budget are also growing rapidly - in particular, the so-called tax on the rich (it amounts to 15%, 13% of which goes to the regions, and the excess - to the general treasury) - it is transferred by those who earn more than 5 million rubles a year. In the first 10 months of 2024, the revenues from this article increased to 146 billion rubles, the Ministry of Finance told Izvestia.
The total federal budget revenues from personal income tax increased one and a half times, up to 186 billion rubles, according to the statistics of the Federal Tax Service. They also include, for example, the tax on deposits, as well as a levy on non-residents - they pay on dividends from Russian companies, the tax on income from large winnings (35%) is also transferred here.
The main reason for the increase in personal income tax revenues to the budgets of different levels is, first of all, the growth of citizens' incomes. With a shortage of staff and at the same time record low unemployment of 2.3%, companies have to raise salaries to retain employees, explained Freedom Finance Global analyst Vladimir Chernov.
Salaries are also being raised because the economy as a whole is developing and growing at an accelerated pace - as Vladimir Putin said at the "Russia Calling!" forum on December 4, GDP increased by 4.1% in ten months.
As a result, nominal wages grew by 18% year-on-year, while real wages (adjusted for inflation) grew by 9%, according to the most up-to-date data of the Ministry of Economic Development for January-September 2024.
Due to the fact that the overall level of income is growing, more and more people now fall under the increased tax rate, added independent expert Andrei Barkhota. Therefore, budget revenues under this item are increasing.
Another reason is the increased efficiency of tax administration, added Ekaterina Golubtsova, associate professor of the Department of State and Municipal Finance at Plekhanov Russian Economic University. It is becoming more and more profitable for people to work "in the white".
It is also important that this year budget revenues from personal income tax on earnings from dividends have increased almost one and a half times, added Vladimir Yeremkin, a researcher at the Laboratory of Structural Research of the IPEI of the Presidential Academy. In recent years, interest in investing in shares has been continuously growing, and this year some organizations, such as Sber, have paid large dividends.
In addition, it is indicative that personal income tax payments have jumped from income for work under contracts of state employment, as well as from the lease or sale of property, the expert added. In recent years, many people have managed to take out preferential mortgages in order to then rent apartments.
Why the increase in personal income tax revenues is important for budget sustainability
The increase in personal income tax revenues from the point of view of the state budget is a positive phenomenon in the conditions of the treasury deficit, said Vladimir Yeremkin from the Presidential Academy. The tax is an important source of revenue.
In addition, the increase in budget revenues from individuals indicates that their solvency is growing, and with it the stability of public finances, said Georgy Ostapkovich, Director of the Center for Conjunctural Studies of the Institute of Economic Research of the National Research University Higher School of Economics. This trend ensures the stability of budgetary processes, which is important for solving social problems, he said.
Subjects can fulfill their obligations both to the population and to the federal center, the expert added. In addition, this type of revenues protects against shocks in certain sectors of the economy, such as oil and gas.
The main part of personal income tax goes to regional budgets, that is, it directly affects the ability of the subjects to invest in their own development. And this is one of the key tasks of the state now, added Georgy Ostapkovich.
According to Vladimir Yeremkin, the trend for the growth of revenues from personal income taxes should continue against the background of the continuing increase in wages of Russians. In addition, from next year the progressive taxation scale will be introduced in the country, which will also strengthen this trend.
From next year there will be five steps of personal income tax rate:
13% - for incomes up to 2.4 million rubles per year;
15% - for incomes from 2.4 million to 5 million rubles per year;
18% - for income from 5 million to 20 million rubles per year;
20% - for income from 20 million to 50 million rubles per year;
22% - for income over RUB 50 million per year.
The increased rates apply only to the amount of the excess, not to the entire income. It is this part that will go to the federal budget. The Ministry of Finance estimates that the introduction of a progressive personal income tax scale will bring in about 533 billion rubles in 2025 alone.
