Russia to introduce luxury tax in 2013


DLT Luxury Department Store, St Petersburg (owned and operated by Tsum)

The already stagnant luxury market of Russia will be dealt another blow in 2013 with the introduction of the so called ”luxury tax”. Tax on luxury, including taxes on classy cars and real estate, should be introduced in the first half of 2013, Russia’s President Vladimir Putin said in his Federal Assembly address Wednesday.  President Vladimir Putin finds it fair to tax the rich who show their luxuries off but, at the same time, he believes that a moderate flat income tax for individuals should remain. It is unclear how the ”show off” will be defined and the value of goods the tax will apply for.