Irina Ilina: Property taxes can reduce wealth inequality

Taxes, including property ones, can be used to reduce wealth inequality in society, Irina Ilina, a representative of Russia's National Research University Higher School of Economics (HSE), said at WUF13 in Baku, Report informs.

According to her, taxation is an important tool for changing socio-economic systems, including in the context of accumulated wealth inequality.

"Taxes are often perceived negatively, but when applied correctly, they are an effective mechanism of public policy," she said.

She cited Russia as an example, where property taxes are considered local taxes and form the resource base for municipalities, allowing them to finance the development of urban infrastructure, including roads, schools, and social facilities.

She noted that the Russian tax system has differentiated property tax rates for individuals, depending on the value of the property, ranging from 0.1% to 2.5%.