Russia proposed to abolish personal income tax when selling economy-class housing during the crisis

Photo of author

By admin

Ilya Semin, the director of the ONF coordination center for economic recovery, appealed to the Ministry of Economic Development and the Ministry of Construction with a proposal to exempt individuals from personal income tax (PIT) when selling economy-class housing if they buy new living space in new buildings in 2020 or buy an apartment using preferential mortgage programs within a year from the date of sale.

The preferential programs mean a mortgage at 6.5%, the Far East program and benefits for doctors, teachers and the military. The Ministry of Construction is invited to determine housing, what value should be considered an economy class.

Semin pointed out that due to the economic conditions caused by the coronavirus, it is necessary to support citizens who want to improve their living conditions.

Earlier, the general director of the Center for the Development of Regional Policy Ilya Grashchenkov said that a decrease in mortgages at 6.5% is a good step, but still it is much higher than in Europe, where mortgages are at the level of 2-4%. “Considering that we live poorer than in Germany or the Czech Republic, and we pay more, these steps can be called revolutionary, but still insufficient to resettle everyone in their apartments,” said Grashchekov.

Leave a Comment