Assessment of the introduction of a progressive consumption tax in Russia

The subject of this article is the assessment of the feasibility of introducing a progressive consumption tax (PCT) in the Russian Federation as an alternative to the existing taxation system, which includes value-added tax (VAT), corporate income tax, and personal income tax (PIT). The possibility of forming a new tax model based on the taxation of final consumption using a progressive rate scale is considered. The article analyzes the features of the PCT mechanism, its impact on taxpayer behavior, investment activity, savings, and macroeconomic indicators. Additionally, attention is given to issues of tax fairness, sustainability of tax revenues, and administrative costs. The research examines international experience, including tax models in Estonia, Singapore, and the USA, to identify relevant benchmarks for Russia. A comparative analysis of the existing and proposed systems is conducted based on key criteria of tax policy. Methods of comparative analysis, modeling tax burden, systematic evaluation of fiscal efficiency, and interpretation of macroeconomic scenarios based on normative and empirical data are used. The scientific novelty of the work lies in the development and justification of a new tax model focused on final consumption, while applying a progressive rate scale to achieve social justice. Unlike the current tax system, the PCT offers the elimination of income taxation and reinvested profits, which reduces distortions in economic behavior and stimulates long-term savings and investments. The findings of the research indicate the potential to replace VAT, corporate income tax, and PIT with a unified tax structure while maintaining fiscal stability of the budget. Advantages of the PCT, such as reducing inflationary pressure, simplifying administration, combating tax evasion, and increasing horizontal and vertical tax fairness, are highlighted. The study substantiates that with the technical and institutional preparation, the introduction of the PCT can enhance the competitiveness of the Russian tax system.

Progressive taxation, Consumption, Tax reform, Tax fairness, Investment, Savings, Tax base, Fiscal efficiency, Value-Added Tax (VAT), Macroeconomic stability