The individual income tax revenue paid by Moscow taxpayers have increased by 11%. However, government officials claim this is due to Muscovites’ higher wages.
Between January and September, the Moscow city budget received RUR 727 bln ($11 bln) of the income tax revenue. Last year Moscow taxpayers paid RUR 70 bln ($1 bln) less over the same period. Individual income tax is one of the major sources of the city’s funds as it accounts for 39% of the total budget, Vechernyaya Moskva reports.
Government officials believe the increase in the tax revenue is due to the fact that local wages are on the rise and new companies are being started. Over the eight-month period, the average nominal wage in Moscow grew by 8.7% year-on-year, which is above the inflation rate.