MIL OSI Translation. Region: Russian Federation –
Photo by M. Denisov. Mos.ru
The average salary for 11 months of 2020 increased by 6.1 percent compared to 2019 and amounted to 95.7 thousand rubles. The largest growth – by 14.9 percent – was recorded in the spheres of health care and social services.
At the end of 2020, revenues from personal income tax (PIT) to the Moscow budget increased by 11.2 percent compared to 2019, and amounted to one trillion 155.2 billion rubles.
The restrictions associated with the spread of the new coronavirus infection influenced the dynamics of income from personal income tax. Compared to the same period last year, in the first quarter they increased by 23.3 percent, and in the second they decreased by 14.7 percent. The fall was offset by the recovery growth of the economy. From July to December 2020, 688.8 billion rubles were transferred to the Moscow budget. This is 19 percent more than in the same period last year.
The main sources of income were the increase in the wage funds of the capital’s enterprises and organizations, the maintenance of unemployment at a relatively low level and the results of the declaration campaign. According to Mosstat, the average salary for 11 months of 2020 increased by 6.1 percent compared to 2019 and amounted to 95,719 rubles. The largest growth – by 14.9 percent – was recorded in the spheres of health care and social services.
Income from personal income tax from small and medium-sized businesses at the end of 2020 amounted to 257.7 billion rubles. Their share remained at the level of 22 percent of the total tax that went to the city budget. Payments from individual entrepreneurs and individuals in private practice increased by almost 40 percent. The budget received 4.6 billion rubles from them.
As of the end of December 2020, the registered unemployment rate in Moscow was 1.3 percent.
“When implementing anti-crisis support measures for the economy in 2020, special emphasis was placed on maintaining employment and income levels of citizens. In April, the Moscow Government began implementing a city program for subsidizing interest rates on loans issued to small and medium-sized businesses, providing businesses with deferrals and benefits in paying tax and non-tax payments to the Moscow budget. At the same time, there was a federal lending program for industries affected by the epidemic, – noted
Elena Zyabbarova, Minister of the Government of Moscow, Head Department of Finance… “The promptness and targeting of support measures made it possible to launch the process of restoring employment and the wages fund of city organizations in June”.
Personal income tax revenues have increased in almost all areas of the urban economy. At the end of last year, payments from IT organizations grew the most (by 14.7 billion rubles, or 19.5 percent, compared to 2019) and trade enterprises (by 13.4 billion rubles, or 9.2 percent). percent).
Also, income from personal income tax from organizations providing services in the social sphere, enterprises of the construction industry and the manufacturing industry increased. They amounted to 6.1-8.3 percent.
“In 2021, continued recovery economic growth, an increase in investment and the number of jobs are expected. The forecast of the socio-economic development of the city of Moscow for 2021 and the planning period of 2022–2023 assumes in the medium term an increase in the level of nominal wages by 5.9–7 percent in annual terms. Accordingly, in the city budget for 2021–2023, a steady increase in income from personal income tax is forecasted, ”Elena Zyabbarova emphasized.
Personal income tax is one of the main sources of income for the Moscow budget. Over the past years, its share in the city’s income has been about 40 percent. The amount of enrollment directly depends on the size of wages, the number of jobs in the city and the process of legalizing the labor market.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.