The State Duma adopted at first reading a bill abolishing the 13% tax on financial assistance paid to college and university students.
Amendments are proposed to Article 217 of Part 2 of the Tax Code.
Children without parental care, students with disabilities, members of low-income families and other vulnerable social groups needing support will be able to apply for financial assistance during university study.
Currently assistance up to RUB 4,000 is exempt from personal income tax, while amounts above this are taxed at 13%.
“It is unfair when the state supports young people but takes part of the payment back. Such help should not be treated as income: it is a targeted payment for a young person in difficult circumstances,” initiative co-author and Youth Policy Committee Chairman Artyom Metelev noted.