Taxation in Russia: Winners & Losers

Posted in: Fiscal Justice, Inequality, Russia

Taxation in Russia: winners and losers


Inequality and Individual Income Taxation in Russia

Russians at the bottom of income distribution believe inequality is high and rising.[i]

The level of inequality in Russia is on a par with that of Turkey and Latin American countries. According to official statistics, in 2014 the after-tax income of the most affluent tenth exceed by 16 times the income of the worse-off tenth of Russians.[ii]

Oxfam and the Global Call to Action against Poverty in Russia carried out an analysis of income distribution and tax structure in Russia and came to the following conclusions:

  • Russians are getting wealthier but income inequality grows;
  • Russia has a flat tax on personal income, hence taxation is regressive;
  • Middle- and low-income people pay too much and are hit severely by the income tax, while the richest people pay less and take advantage of more tax deductions.
[i] Oxfam Report (2014). «After Equality: Inequality trends and policy responses in contemporary Russia»,

[ii]Federal State Statistics Service


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