Kremlin pours cold water on proposed ‘tax on childlessness’

Date: 2024-10-22

The measure has been widely debated by Russian MPs amid efforts to boost the birth rate in the country

A tax on childlessness is unlikely to solve Russia’s demographic problems, according to Kremlin spokesman Dmitry Peskov. The country has been plagued by a declining birth rate for years. In 2023, only 1.264 million children were born in Russia, the lowest since 1999, according to Rosstat.

The proposed tax entered the spotlight earlier this month, after Lieutenant General Andrey Gurulev, a member of the State Duma Defense Committee, suggested reviving the Soviet-era policy of taxing people who don’t have children, arguing that the money raised could be used to modernize orphanages.

Speaking to reporters on Monday, Peskov said the Kremlin does not yet know the specific details of the proposal, which makes it difficult to form an opinion on it.

“It is important to know the details of the proposal, we don’t yet know what it involves,” he stated, adding that lawmakers should take time to analyze the Soviet efforts on the policy first before rushing through legislation.

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“We need to analyze that experience. At first glance, this tax had hardly any impact on the demographic situation. Although this matter should first be studied by experts,” Peskov said.

The tax was introduced in the USSR to stimulate population growth after the country suffered huge losses in World War II. It was in effect from 1941 to 1992 and applied to men aged 20-50 and married women aged 20-45 who did not have children. The tax rate varied around 6%, depending on income.

The idea of reviving the tax has sparked heated debate among lawmakers. Russian State Duma MP Evgeny Popov said earlier this month that the country should instead introduce a “tax on stupidity.”

Nina Ostanina, the head of the State Duma Committee on Family Protection, warned that the measure could “traumatize” young Russians, arguing that many people put off having children for financial reasons. Some MPs noted that there are medical issues that can prevent people from having children, while others argued that providing housing, good wages, and social guarantees to young families is a better way to boost the birth rate.

READ MORE: Russian govt backs legislation to tackle ‘child-free’ ideology

Commenting on Gurulev’s proposal, State Duma Chair Vyacheslav Volodin urged lawmakers to “avoid ill-considered initiatives and extremes,” so as not to “frighten people.” He stressed that no one will violate the right of women to choose whether or not to have children.

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