They want to exempt income from the sale of recyclable materials by individuals from personal income tax, but only in the amount of up to 4 thousand rubles a year. Tax agents will be buyers, that is, processors, for example, of metal – by analogy with an employer who pays fees for an employee. This is stated in the amendments to the Tax Code of the Russian Federation, which the Ministry of Industry and Trade sent out to businesses for discussion (Izvestia has it).
Now income tax is paid on any amount of income. At the same time, today there is an annual tax deduction of 250 thousand rubles for one individual, from this amount no fees are collected.
“The bill actually assumes that the current deduction will decrease by more than 98% – to 4 thousand rubles,” Viktor Kovshevny, director of the NSRO Ruslom.com association, told Izvestia.
The non-taxable 4 thousand are especially few, in particular, for metal, he pointed out. Due to innovations, processors will have to increase the cost of scrap by 13% so that sellers do not go to the gray market, which may lead to another rise in prices for metal products for construction and mechanical engineering, the specialist said. Or buyers will deduct the amount of tax when calculating for recyclable materials and in fact not pay the citizen 13%, and this demotivates citizens to collect recyclable materials, says Ruslom.com’s response to the bill, which Izvestia got acquainted with.
The limitation of 4 thousand rubles of the amount exempted from personal income tax will not lead to significant consequences for the market (including not increasing the price of scrap), but it will also not solve the problem of demotivating citizens to collect recyclable materials, according to the Ministry of Industry and Trade. On December 17, 2020, the department sent to the government of the Russian Federation a positive draft of the conclusion of the Cabinet of Ministers on the bill of the deputy Alexei Kanayev, proposing the complete abolition of personal income tax for the delivery of recyclable materials without restrictions.
Read more in the exclusive material from Izvestia:
Above scrap: income from the delivery of metal was offered to be exempted from personal income tax