ALEXANDER DERYUGIN SPOKE ON REASONS OF WEAK DYNAMICS IN THE PIT REVENUES IN Q1 2023

Fifteen regions of Russia have reported a recovery of PIT revenues to their budgets after the decline inQ1. The press office of the Federal Tax Service commented that there were no delays in transfers of PIT to regional budgets. The temporary decline in receipts was due to both the factors of changes in the procedure and timing of depositing the tax payments to the budgets and the formation of unified tax accounts for organizations and individual entrepreneurs, the agency explained.

According to the Gaidar Institute studies, a significant part of regional budgets is formed by PIT revenues, which in Q1 dropped by 20.3%. The reason could be the specifics of paying taxes through the UTA (for all payments there was a single accrual deadline - the 28th of the month), said the author of the report Alexander Deryugin. If the deadline for transfer coincides with a weekend or holiday, the tax is credited to the budget in the following month. Alexander Deryugin also believes that the reduction in the period of refunds for property and social deductions from 45 to 15 days had its impact.

“A weak dynamics of PIT revenues in Q1 was largely due to technical changes in the order of payment and reimbursement of taxes, therefore, until the end of this year the improvement of the situation can be expected as well as increase in the average growth rate of tax revenues, said Deryugin.