Migrant outflow and retaining funds in Russia: two sides of new foreign transfer fees

Citizens of Kyrgyzstan and Uzbekistan alone have transferred over $14 billion from Russia to their countries.

Migrant outflow and retaining funds in Russia: two sides of new foreign transfer fees
Photo: Татьяна Демина

Sergei Mironov, a State Duma deputy, proposed to introduce a three percent duty on migrant money transfers in Russia — the total amount exceeded $14 billion according to the results of last year. The money earned from the commission, according to the official's calculations, will amount to 45 billion rubles. Experts interviewed by Realnoe Vremya were divided in their opinions. On the one hand, this amount is really significant for the economy, on the other hand, the new restrictions will lead to an even greater outflow of migrants, which ultimately negatively affects the same economy. Read the details in the material.

Migrants transfer over $14 billion from Russia to their countries

Russia needs to introduce a state duty on migrant money transfers, State Duma Deputy Sergei Mironov expressed his opinion on his Telegram channel. He pointed out that last year, citizens of Kyrgyzstan and Uzbekistan alone transferred over $14 billion from Russia to their countries. At the same time, the vast majority of migrants, according to him, do not pay taxes.

“In 2021, the government discussed the issue of an additional commission for transfers, but the ministry of finance dragged its feet. When it comes to raise tariffs, excise taxes, and fees for Russian citizens, our officials do not hesitate here, but when it comes to foreigners, they immediately start fooling around," Mironov said indignantly.

“We need to introduce a state duty on migrant money transfers," State Duma Deputy Sergei Mironov outlined his proposal in a Telegram channel. Анастасия Фартыгина / realnoevremya.ru

The deputy called the fee of 3% of the transfer amount a fair amount:

“The treasury will receive over 45 billion rubles from transfers to only two countries — Kyrgyzstan and Uzbekistan. Don't we really need that money?! We will prepare a legislative initiative and submit it to the State Duma.”

Lack of taxes from migrants is a question for employers

Reducing the outflow of money from the country with the help of duties is certainly a positive moment, Eduard Sharafiev, a deputy of the State Council of Tatarstan, told Realnoe Vremya. However, the tax evasion mentioned by Mironov, in his opinion, is not fully the responsibility of migrants themselves:

“This is a problem of gray labour market, a question of control by employers. I have repeatedly advocated for stricter control over migrants and the need to impose stricter responsibility on employers. If these measures are taken, the tax base will increase at the expense of migrants.”

Continuing his thought, Sharafiev said that it is necessary to reduce the number of migrants in non-productive areas — there is an opportunity to avoid taxes.

“This is trading, especially in the markets. Tough measures definitely need to be taken here — we don't need migrants in trade, we need them in production. By the way, it is trade that is one of the sources on which ethnic crime grows," the deputy added.

Continuing his thought, Sharafiev said that it is necessary to reduce the number of migrants in non-productive areas — there is an opportunity to avoid taxes. Михаил Захаров / realnoevremya.ru

Answering the correspondent's question about where the funds could be sent in the event of the adoption of the law on duties, he answered unequivocally:

“The proceeds should be used to support our fighters in the SVO zone, for example, to purchase special technical equipment such as drones and others. I am currently on a humanitarian mission in the SVO zone and I want to say that these issues are being resolved by volunteers and caring citizens.

In general, Sharafiev believes that Mironov's idea “is viable, but we need to carefully study the details”.

“This will be the third factor that will accelerate the outflow of migrants from Russia”

Another interlocutor of Realnoe Vremya, Zakir Sariev, the editor-in-chief of Trudovoy Migrant, did not share the deputies' enthusiasm. In his opinion, the initiative will have a negative impact on the Russian economy.

“There is already a large outflow of migrants — exams have become the first bright wave. Many fail. Foreigners need to be legalised by April 30 — the second wave will begin. The duty will become the third factor that will only accelerate the outflow of migrants from Russia," he warned.

At the same time, Sariev expressed an opinion similar to Sharafiev's about responsibility for non-payment of taxes:

“Who employs migrants? Russian companies. We need to work with them. Why don't they formalise and pay taxes? Foreigners are simply cornered. Migrants must be legalised in the country by April 30. But how should they legalise themselves? Russian citizens rent apartments to them, and they hire them too. It is necessary to work with them so that they fulfill their duties to their own state. Why don't the authorities demand anything from them? The root of the problems lies in them.

However, if the law is passed, the proceeds should be used for training courses for migrants, the source said. Михаил Захаров / realnoevremya.ru

However, if the law is passed, the proceeds should be used for training courses for migrants, the source said. In particular, they will help foreigners to successfully pass exams and master the professions necessary for the Russian economy.

“In any case, it is the wrong approach to restrict migrants. We need to work with Russians. Foreigners are powerless in these matters, they cannot register themselves. But registration is necessary — it is important for the safety of Russians themselves," the expert summed up.

Elizaveta Punsheva

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