Russia not ready for luxury tax - minister

Changes in taxation of income from deposits, investments in stocks and real estate are an alternative to the introduction of a luxury tax in Russia, Finance Minister Anton Siluanov said.

"This is an alternative to a luxury tax," Siluanov said Sunday at a meeting with supporters of President Vladimir Putin.

He recalled that the Finance Ministry is proposing to even out taxation of personal income and income from stocks or real estate, as well as bank deposits.

"We are now beginning to work it out. I think that next year we'll work it out [and it will go into effect] in 2014 at the earliest," Siluanov said.

He said that in discussing the introduction of a luxury tax the problem was how to define luxury, both in regard to real estate and automobiles. "We don't have the concept of family income," Siluanov said, adding that in order to introduce a luxury tax it is necessary to take into account the combined income of a family and the property it owns.

"We're not ready for this yet. We're not setting such objectives for ourselves, but there is the objective of evening out taxation of income from real estate, stocks and deposits," Siluanov said.

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