The Government Commission on Legislative Activities supported the amendments on the priority transfer of personal income tax to the regional and local budgets. The review is at the disposal of Vedomosti.
We are talking about a bill that proposes to change the sequence of crediting personal income tax and establish the priority of crediting amounts to regional and local budgets.
Changes can be made to Part 1 of the Tax Code of the Russian Federation. The initiators of the bill were deputies Vyacheslav Volodin, Alexander Zhukov, Irina Yarovaya and others, as well as Senator Valentina Matienko.
According to the review of the government commission, the draft law complies with the provisions of acts of higher legal force, including the Treaty on the Eurasian Economic Union.
The bill was submitted to the State Duma on May 11. According to the explanatory note, changes to the Tax Code are necessary to “improve the financial stability of regional and local budgets”, as well as to “more evenly finance spending obligations” of the regions.
“The main source of tax revenues for the consolidated regional budgets in most regions is the personal income tax (PIT). The introduction of a single deadline for the payment of tax payments and the diversion of personal income tax to pay off arrears on other taxes leads to an uneven flow of funds to budgets, their imbalance and does not allow to fully finance current budget expenditures, ”the explanatory note c to the bill clarifies.