Gulmiyra Kaliyeva

Candidate of Jurisprudence, associate professor

Al-Farabi Kazakh National university

Almaty, Kazakhstan

kalieva-gs@mail.ru

 

Rustam Tursunov

1st year masters student

Al-Farabi Kazakh National university

Almaty, Kazakhstan

tursrus@mail.ru

To a question of expediency of introduction of a tax on luxury in tax system of the Republic of Kazakhstan

 

In many foreign countries the tax on luxury is imposed for the purpose of fight against distribution of an inequality of obtaining the income when reforming tax system of the state. According to S. I. Ojegov and N. Yu. Shvedova's explanatory dictionary [1, page 723], the concept «luxury» represents excesses in comfort, in pleasures. It is the social and economic phenomenon connected with consumption of the benefits. Luxury goods mean goods, demand for which grows with obtaining the additional income. At the price they are available only to wealthy people. It is possible to do without these objects in life, but, consuming them, the individual passes into a new special segment - a class of rich men.

For broader disclosure of a subject it is necessary to study prerequisites and history of emergence of such concept as «a tax on luxury». The tax on luxury in Europe has appeared in the 17-18th centuries. In this or that form he has remained in many countries. Moralists and pragmatists met that expenditure for luxury reduce the capital share going for accumulation. Historically taxes on luxury are considered as a certain intermediate stage on the way to the modern value-added tax in this or that form accepted in all developed countries. Britain became on this way in the 18th century when after revelry of corruption at the first minister Uolpole patriotically adjusted idealist William Pitt who considered that the highest classes have to pay more has come to the power. Pitt has taxed exit horses (analog of our luxury cars), dogs, guns, the coats of arms, hours, gold and silver ware, gloves and even powder for wigs which were worn by aristocrats. Actually taxes on luxury William Pitt wanted to prepare public opinion for idea of general income tax and has taken the first steps to the value-added tax [2].

In the Republic of Kazakhstan according to paragraph 34 of article 12 of the Code of the Republic of Kazakhstan «About taxes and other obligatory payments in the budget», taxes admit - the obligatory monetary payments which are legislatively established by the state unilaterally in the budget, except for the cases provided by the Tax Code, made in certain sizes, having irrevocable and gratuitous character [3]. The tax on luxury represents taxation of consumer goods which demonstrate wealth or about relative prosperity. On a way of collection this tax is direct as it is paid directly by subjects from property or the additional income of the taxpayer. Usually he assesses the natural persons having luxury goods in personal consumption. In some countries this value-added tax (the more a taxation project cost, the more sum of a tax). Rates are differentiated depending on the purpose of introduction of this tax by the state, it is explained by economic policy, inflationary expectations, growth or recession of GDP, rates of economic growth, a budget deficit, social stratification of society, etc. [4]. 

If to consider experience of the foreign country, then first of all it is necessary to consider the developed countries of the world, such as: Great Britain, China, France, USA.

Great Britain is the first-ever country which Government has imposed a tax on excess profit (1915) which became a basis for application of a tax on luxury concerning natural persons subsequently. In Great Britain analog of a tax on luxury is the stamp duty on expensive real estate which is paid upon her purchase. The rate of a tax depends on the cost of the acquired object, a progressive rate: 1 percent - for real estate worth 125 - 250 thousand pounds sterling, 3 percent - if it costs 250 - 500 thousand pounds sterling, 4 percent - 500 thousand pounds sterling are more expensive to objects. Owners of real estate worth more than one million pounds annually give to the state 5%. Increase of a rate to 7% is in the future planned. Besides, the authorities intend to toughen seriously supervision of evasion from payment of the stamp duty [5].

The tax on luxury in China long enough is a source of the considerable income for the Chinese government. As of 2011 about 27% of a turnover of the market of luxury goods in the world were the share of China. In 2010 the state has earned 188 billion dollars only on taxes on luxury that makes 78% of all expenses of the central government.

In China taxes on luxury extend to any goods which can formally be carried to luxury. It both expensive watch, and perfumery, and clothes, and wine, and electronics. An official rate of a uniform tax of 15%, but upon goods on continental China are 45% more expensive, than in Hong Kong, is 51% more expensive, than in the USA, and 72% more expensively, than in France. Besides, also the real estate tax is imposed. First of all, to fight against an investment bubble. 10-15% have to send those who resell the house to treasury, having bought it less than two years ago. The measure perfectly acts on Taiwan. The term «tax on luxury»  includes also various duties: import, VAT and tax on consumption. Tax rates depend on a type of production. For example, for elite cosmetics or perfumery duty on import can reach 50%, the VAT of-17%, and a tax on consumption - 10%. It is much higher, than in other countries of the world [4].

For example, the question of imposing a tax on luxury in Russia rise since 2003. In 2013-2014, at the suggestion of the Russian Union of Industrialists and Entrepreneurs, the tax will be levied apartments cost from 30 million rubles, an area of ​​150 square meters per person;.. cars worth of 3 mln. rub., capacity of 400 hp .; country houses worth 50 million rubles, 500 square meters per person..; land worth 10 million rubles, an area of ​​over 50 hectares..; the list also fall yachts, airplanes and helicopters. From the list of objects of taxation experts excluded jewelry, clothing, furniture due to the complexity of the administration; property which is owned by the state, the subjects of the Russian Federation and municipal entities; State awards and some other things. [4] In 2014 in Russia to be applicable to a luxury tax in the form of taxation of vehicles worth more than 3 million. Rubles. Twice the fees will be charged to the owners of vehicles worth between five and ten million rubles, with a production year of no more than five years. Three times the vehicle tax increase for owners of vehicles worth between 10 and 15 million rubles and 15 million rubles more than in the case since the release of these vehicles not older than 10 and 20 years respectively. Russian Industry and Trade Ministry has published a list of vehicles that fall under the action of this tax. However, now we can see some shortcomings of the adopted law: the tax base is the value of the vehicle, determined by official dealers, without taking into account the various fees and charges, which are already included in this tax (VAT, customs duties, recycling, exchange rate and so on); size luxury tax is differentiated depending on the area of ​​registration of the vehicle, it would be logical to make a differentiation is luxury criterion by region and impose a tax on luxury cars worth more than 3 million. rubles, net of all duties and excise taxes paid on the date of entry cars on the territory of Russia. Thus, already have some proposals on the revision of the luxury tax. In Russia, there are attempts to introduce a luxury tax. In addition, the implementation carried out in a specific part of a luxury tax on the basis of its value, however this implementation can not be considered an unqualified success.

The most successful with respect to the tax on luxury, it is considered the solidarity tax on wealth, adopted in France in 1982. He is charged with a tax resident. Taxes are subject to all of the assets of the citizen, including the property (for example, real estate is taken into account even registered abroad), bank accounts, securities. In this state the taxpayer must exceed a certain threshold (1.3 million euros in 2013). Thus, when the value of the property of a citizen from 1.3 million euros to 3 million euros tax rate will be 0.25%. Over 3 million euros - 0.5%. The taxpayer is allowed to independently calculate the value of your property, but you can make a mistake when declaring no more than 30%. Thus, for example, in 2012, more than three billion euros was received in France budget. It is worth noting that France is one of the countries with the most draconian taxes for millionaires. So, in 2012, the newly elected president Francois Hollande has initiated the introduction of the 75 per cent tax on the additional income of more than 1 million euros. According to him, this was the only way to patch holes in the state budget to support the ailing financial system, as well as contribute to social justice. [4] Despite the fact that in France is big already income tax of physical persons - 41%. However, at the time the tax was not passed. Under the new proposed scheme, which entered into force on 29 December 2013, the 75-percent tax is now paid by all businesses that pay their employees wages in excess of 1 million euros. Under the effect of the tax were individuals whose annual income exceeds that amount. In addition, the tax applies to professional football clubs, who had been actively spoke out against the introduction of the tax, and even staged a strike. According to representatives of clubs, France risks losing a lot of quality players whose salaries exceed a million euros per year [6]. 75 percent tax - a temporary measure. He introduced two years. According to calculations the Ministry of Economy, the tax should bring in the state treasury in 2014, 260 million euros, and in the 2015th - another 160 million euros [7].

Luxury tax in the United States. In America I have repeatedly introduced and later abolished the luxury tax. While the United States as an independent state collection was purely pragmatic sense. He helped to increase budget revenues. Subsequently, the main purpose of introducing this tax was the social cohesion of society. This was particularly noticeable in the nineties, when the richest people had to pay more for luxury items such as yachts, airplanes, expensive furs and jewelry. It is worth noting that in the US tax authorities went the other way, replacing a tax on the wealth of the increased VAT rate for the class «luxury» goods, charged exclusively with their manufacturer. Besides, in America there is a tax on real estate (1-2 per cent of the market value each year), and the inheritance tax with progressive rates (from 18 per cent of the property of small value and up to 55 per cent of the property, whose value exceeds $ 3 million). Thus, the US is only trying to «pull» the financial burden on the rich, receiving investment income to average. Neither of which the introduction of a single tax on luxury today we are not talking [4].

Kazakhstan officially "luxury tax" does not exist. The so-called «luxury tax» began to pick up after a number of relevant initiatives in 2008. Head of State Nursultan Nazarbayev has proposed to change the indirect taxes, including to consider introducing «luxury tax».  Also on the initiative of the public association «Kazpotrebnadzor» introduction of a luxury tax for the richest citizens and legal translation in direction of «shadow» billion will allow to replenish the country's budget by almost a quarter, explaining the initiative so that the state budget will increase by almost $ 2.5 billion in year. Its introduction will contribute to the achievement of the principles of social justice and the harmonization of relations between the various layers and groups of Kazakhstani society.

Then in 2013, the question of tax, was raised in the Majilis, where deputies proposed to increase the rate for cars with engine capacity from 4 to 5 thousand. Cubic centimeters to 130 MCI (1 MCI was 1731 tenge in 2013), for an engine capacity of vehicles of more than 5 thousand. cc. - Up to 200 MCI.

After public discontent Government amended, and the amendments provided for a tax increase on cars with an engine of more than 3 thousand. Cubic meters. See in particular, the rates for cars with the volume of 3-3.2 liters will amount to 35 monthly calculation index (MCI), from 3.2 to 3.5 liters -. 46 MCI, from 3.5 to 4 liters - 66 MCI.

In addition, the MPs during the discussion in the Mazhilis, proposals to raise taxes on cars with engines of more than 4 liters: 4 to 5 liters - to 130 MCI, more than 5 liters - 200 MCI. The new tax rates will be applied to vehicles that have been acquired on 1 January 2014, this position was confirmed by the Law «On introducing amendments and addenda to some legislative acts of Kazakhstan on issues of taxation».

Thus, the tax is considered, of course, could solve the problem in the field of social policy, as well as increase tax revenues, which in the future will be focused on the development of the national economy.

 

References

 

1.       S.I.Ozhegov, N.Ju. Shvedova. Tolkovyj slovar' russkogo jazyka. – M: INFOTEKS, 2009.

2.       Igor' Shnurenko. «Nalog na roskosh': istorija voprosa» [Jelektronnyj resurs]. – Rezhim dostupa: http://www.dp.ru/a/2012/02/05/Na_koster_tshheslavija/

3.       Kodeks Respubliki Kazahstan ot 10 dekabrja 2008 goda ą 99-IV «O nalogah i drugih objazatel'nyh platezhah v bjudzhet» (Nalogovyj kodeks) (s izmenenijami i dopolnenijami po sostojaniju na 01.01.2016 g.)

4.       Nikolaeva E. V. Sravnitel'nyj analiz naloga na roskosh' v zarubezhnyh stranah. Ocenka perspektiv dlja Rossii// Jelektronnyj nauchno-prakticheskij zhurnal «Jekonomika i menedzhment innovacionnyh tehnologij». [Jelektronnyj resurs]. – Rezhim dostupa: http://ekonomika.snauka.ru/2014/05/5225

5.       Internet-portal. «Finam» [Jelektronnyj resurs]// Rezhim dostupa: http://finam.info/news/vlasti-velikobritanii-sokrashayut-podohodniy-nalog-dlya-sostoyatelnih-britantsev/

6.       Ramazanova B.K. Social'nyj aspekt naloga na roskosh'. [Jelektronnyj resurs]./ B.K. Ramazanova. – Rezhim dostupa: http://teoria-practica.ru/-1-2013/economics/ramazanova.pdf

7.       Internet-portal. «Rossijskaja gazeta» [Jelektronnyj resurs]// Rezhim dostupa: http://www.rg.ru/2013/12/30/nalog-site.html