Personal income taxation is a major tool of the implementation of tax policy in any state. The obligation to pay legally established taxes and fees, including the personal income tax (PIT), is enshrined in the Constitution of Russia.
The PIT plays a significant role in the modern tax system of the Russian Federation, as it directly affects the interests of a large number of able-bodied population.
The relevance of the research topic is based on the fact that the PIT occupies a special place in the Russian tax system impacting on the tax policy, people's financial status and, therefore, the economic independence of the state.
According to the Tax Code of the Russian Federation the personal income tax is a direct federal tax levied on income in cash for the reporting period [1].
At the same time, the PIT being a federal tax goes to regional and local budgets. Thereby, 85% of the personal income tax are transferred to the budgets of the constituent entities of the Russian Federation. In course of the research the author attempts to define the PIT share of total tax revenue of the Altai Territory.
Table 1 – The PIT revenue to the consolidated budget of the Altai Territory in 2015–2017, million RUB
Tax revenue |
2015 |
2016 |
2017 |
|||
million RUB |
% |
million RUB |
% |
million RUB |
% |
|
Total |
40148.6 |
100.0 |
49012.9 |
100.0 |
48122.2 |
100.0 |
PIT |
14077.7 |
35.1 |
14750.9 |
30.1 |
15657.8 |
32.5 |
Table 1 reveals that the personal income tax has a high share of the overall tax revenue of the Altai Territory. It accounts for an average of 32.5% of total tax revenue of the regional budget.
Moreover, consideration of the dynamics of the PIT revenue to the consolidated budget of the Altai Territory allows us to highlight a tendency of its growth (Table 2).
Table 2 – The dynamics of the PIT revenue to the consolidated budget of the Altai Territory in 2015–2017, million RUB
Tax revenue |
Absolute value |
Absolute change |
||||
2015 |
2016 |
2017 |
2016 / 2015 |
2017 / 2016 |
2017 / 2015 |
|
Total |
40148.6 |
49012.9 |
48122.2 |
8864.3 |
-890.7 |
7973.6 |
PIT |
14077.7 |
14750.9 |
15657.8 |
673.2 |
906.9 |
1580.1 |
This is primarily due to the average wage growth in the Altai Territory. It is apparent from data of the Russian Federal State Statistics Service [4].
At the same time, we should take into account such negative phenomena as the shadow sector in the economy of any state. The Russian Federation is not an exception.
For example, recent studies have shown that a high proportion of the shadow economy takes place in regions where there is little industry: virtually every 5th inhabitant of the Altai Territory is involved in the informal sector of the economy.
The shadow economy has in general a negative impact on the socio-economic development. Therefore, one of the key aspects of our study is the shortfall of tax revenue from the taxation of individuals in the budget.
Thus, the question of tax evasion remains relevant to this day.
In our opinion, there are two main problems related to the personal income tax collection:
1) the high tax burden on the low-income population;
2) the shortfall in the budget of tax revenue from PIT.
Some important observations are noted and summarized below.
First, we consider it proper to introduce the concept of non-taxable minimum into the Tax Code. It is appropriate to set non-taxable minimum in the amount of the official subsistence minimum.
This measure will contribute to the elimination of the social stratification of society because the tax burden on the poor population will be minimal. Obviously, the tax base will be significantly reduced due to this innovation.
Therefore, it is advisable to increase the basic rate to 15%. The choice of this rate is primarily due to a more equitable redistribution of income, as the amounts paid from higher income will increase. On the other hand, the increase is not significant enough to cause mass discontent among the population.
Besides, we think it is necessary to «tighten» the control exercised by the tax authorities over fulfillment of the tax obligation to pay taxes. It is also needed to tighten the sanction of Art. 122 of the Tax Code, which holds liability for non-payment or partial payment of tax as a result of understatement of the tax base.
In summary, it should be noted that due to the implementation of the measures mentioned above it is expected to increase the disposable income of the least privileged population. Some important observations above will allow to reflect the fiscal purpose of personal income taxation to the fullest extent. In addition, these measures will ensure the realization of human rights provided for by law of the Russian Federation.
References
1. Налоговый кодекс Российской Федерации (часть вторая) от 05.08.2000 № 117-ФЗ (ред. от 07.03.2018) (с изм. и доп., вступ. в силу с 01.04.2018).
2. Куликова, И.В. Прогрессивная шкала подоходного налога: оценка налоговых последствий для плательщика/ И.В. Куликова, А.А. Черных, В.В. Воробьева// Экономические науки. - №3(148). - 2017. - С.69-73
3. Федеральная налоговая служба. [Электронный ресурс] – URL: https://www.nalog.ru/.
4. Федеральная служба государственной статистики. [Электронный ресурс] – URL: http://akstat.gks.ru/.