Income tax revenue is 10.4 billion rubles down in Tatarstan
The Cabinet of Ministers named the factors that had a negative impact on budget replenishment
The decline in the profitability of Tatarstan enterprises, the difficult investment situation and the salaries of public sector employees were discussed today at the republican meeting of financial, treasury and tax authorities of the Republic of Tatarstan on the results of the execution of the budget for 9 months of 2024. Rais Tatarstan Rustam Minnikhanov appreciated the efforts of the government and tax authorities aimed at replenishing the treasury, and demanded that such a resource as the provision of paid services be better used to ensure the growth of salaries of employees of budgetary organizations. Read more details in a report of Realnoe Vremya.
“We need to find funds now”
The Tatarstan governor called the investment situation in the republic difficult at a republican meeting of financial, treasury and tax authorities on the results of budget execution for 9 months of 2024, which was held today in the Government House.
The head of the republic noted that it is important to ensure a balance of revenues to the budget, and recalled that the budget for the next year, 2025, is planned with a significant deficit — 13.5 billion.
“We need to start finding funds now,” he said. “The decrease in revenues from income tax for 9 months of this year exceeded 10 billion rubles compared to the level of the same period last year. The situation is tense, a number of enterprises are also expecting a decrease [in profits].”
In search of internal reserves
The governor of Tatarstan urged to focus on business issues and problems, use all support measures and find internal reserves to implement all investment projects started in 2024. He also recalled the importance of republican programmes aimed at improving the quality of life of the republic's residents. In 2024, 44 such programs will be implemented, he noted, covering the construction, repair and improvement of 3,083 various significant social facilities, and the total investment amounted to more than 64 billion rubles.
He highly praised the joint work of the Ministry of Finance, tax and supervisory authorities to reduce tax arrears, noting that the debt as of 1 October 2024, decreased by 4 billion rubles — to 11 billion.
“If only you could pull out another 4 billion next year,” he expressed his wish to Prime Minister of the Republic Alexey Pesoshin.
More losses, lower profit
He noted that income tax revenue for the first 9 months of 2024 decreased by 7.8% -from 133.2 billion rubles to 122.8 billion — compared to the same period last year, and specified that a number of factors had a negative impact in this regard — a large number of declarations submitted to reduce the amounts of calculated tax, an increase in commercial expenses and more expensive loans.
Organisations' losses increased almost twofold compared to January-September 2023 — from 28.4 billion rubles to 47.4 billion. An increase in tax payments is noted in oil production due to an increase in revenues from the mineral extraction tax and additional income tax, in transportation, construction, banking, information and communications. And a decrease occurred in manufacturing, energy and wholesale trade. The share of taxes transferred to the federal budget for 9 months amounted to 64%, to the consolidated budget of the republic — 36%.
However, revenues from personal income tax increased by 56.8% compared to last year and amounted to 125 billion. As of 1 October 2024, 490,000 tax returns on citizens' income for 2023 were submitted, including more than 32 thousand returns with the amount of personal income tax to be paid to the budget of almost 4.9 billion rubles (1.6 times more than last year). 84 million rubles remain unpaid, and enforcement measures are taken on them.
Receive and pay
The mailing of tax notices to owners of vehicles and real estate has been completed — they have been charged a total of 9.6 billion rubles, which is 500 million more than in 2022. The notification also includes personal income tax for a total of 3.5 billion rubles. In addition, for the first time, Tatarstan residents will receive a calculation of income tax in the form of interest on bank deposits.
“In early October, 360,000 people obtained the status of self-employed,” Safiullin recalled. “Taxes on their professional income for 9 months amounted to a very impressive sum of 2.3 billion rubles — with an increase by almost one and a half times compared to January-September 2023. The main task is to ensure economic activity and the further transfer of the self-employed to other business categories.”
He noted that out of 35,000 organisations and individual entrepreneurs who work with the self-employed, only 158 are today at risk of substitution of labour relations — despite the fact that 116,000 people are listed as self-employed in Tatarstan.
Salaries were paid on time and in full
Tatarstan Finance Minister Radik Gayzatullin reported that over 9 months, the budget received 123 billion rubles from profit tax, 125 billion rubles from personal income tax, 26 billion from total income tax, as well as 33 billion in excise taxes and 6.1 billion from land tax.
33.8 billion rubles of non-tax revenues were paid to the budget of the republic, including 26.7 billion to the budget of the Republic of Tatarstan and 7.1 billion to local budgets.
At the same time, budget expenditures amounted to 358 billion rubles, including the budget expenditures of the Republic of Tatarstan — 297 billion rubles, local budgets — 127 billion rubles. Radik Gayzatullin noted that the budget balances at the beginning of the year and the revenues received for 9 months made it possible to fully and timely pay wages with accruals and to sufficiently finance the planned budget expenditures of all levels.
Bring out of the shade and collect rent
Rustam Minnikhanov reminded the meeting participants that replenishment of the revenue part of the budget requires continuous working — it is necessary to constantly monitor the current performance of enterprises, analyse their forecasts and take measures to support producers.
“These are the key tasks of industry ministries,” he said. “The Ministry of Economy, together with the Ministry of Finance and the tax service, must coordinate this work. The high-quality and uniform execution of the budget largely depends on this.”
The head of the republic instructed to continue the work of the commissions on legalization of “shadow” wages to reduce the informal labour market and formalize labour relations and to intensify work on reducing personal income tax debt:
“The current tax debt has increased in a number of districts: Naberezhnye Chelny, Saba Nizhnekamsk, Verkhny Uslon, Mamadysh, Apastovo and Laishevo Districts. This is an unacceptable situation. The heads must urgently sort this out!”
The rais of Tatarstan also instructed to conduct a detailed analysis of non-tax revenues from the use of municipal lands and property due to the fact that in Zelenodolsk, Menzelinsk, Leninogorsk and Tukay Districts, the debt on rent payments has increased compared to the same period last year.
Rustam Minnikhanov raised the issue of wages for public sector employees. Part of the income from the extra-budgetary activities of institutions is used to increase it, however, in Cheremshan, Tyulyachi, Baltasi, Rybnaya Sloboda, Aktanysh, Kaibitsy, Tukay and Aznakayevo Districts, problems with this were discovered. And in a number of districts, after the reduction of teaching rates, the salaries of the remaining employees — teachers and educators — did not increase.