President of the Russian Federation Vladimir Putin has lauded the flat income tax. Despite all the advantages of this taxation system, Mr Putin also noted that it is not for ever. At the G20 Civil Summit the president said that such tax collection procedure not only helps to replenish the national budget, but also stimulate the citizens to declare their personal income openly and fully. According to the statistics, the differentiated taxation causes much more tax evasion cases and a greater budget loss. Meanwhile, Mr Putin underlined that modernization of the current scheme is still an issue. “All the pros and cons, which I have already presented, are being thoroughly mulled over,” he added. The Russian 13% income tax was set in 2000. Thanks to the flat taxation, the amount of dues had risen by more than 25%. The Russia's tax band is one of the lowest in the world. For example, in the developed countries the amount of this payment depends on the income of individuals. The left opposition of Russia supports this progressive tax scale introduction, while the country's government and the leading economists do not favor such novelties.
