Cover IMF Working Papers
Buy Book in Print
The Russian Flat Tax Reform
Author:
Mr. Michael Keen
Search for other papers by Mr. Michael Keen in
Current site
Google Scholar Close
,
Mr. Alexander D Klemm
Search for other papers by Mr. Alexander D Klemm in
Current site
Google Scholar Close
, and
Anna Ivanova null

Search for other papers by Anna Ivanova in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 016
Language:
English
Publication Date:
01 Jan 2005
DOI:
https://doi.org/10.5089/9781451860351.001
ISBN:
9781451860351
ISSN:
1018-5941
Pages:
47
Keywords:
WP; wage rate; gross income; tax rate
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (566.2 KB) Download Epub
Russia dramatically reduced its higher rates of personal income tax (PIT) in 2001 establishing a single marginal rate at the low level of 13 percent. In the following year, real revenue from the PIT actually increased by about 26 percent. This 'flat tax' experience has attracted much attention (and emulation) among policymakers, making it perhaps the most important tax reform of recent years. But it has been little studied. This paper asks whether the strong revenue performance of the PIT was itself a consequence of this reform, using both macro evidence and, in particular, micro-level data on the experiences of individuals and households affected by the reform to varying degrees. It concludes that there is no evidence of a strong supply side effect of the reform. Compliance, however, did improve quite substantially-by about one third according to our estimates-though it remains unclear whether this was due to the parametric reforms or to accompanying changes in enforcement.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund