The enactment of the 25% tax on individual deposits would mean robbing people on the pretext of economic revival, MP from the Communist Party faction Spyridon Kilinkarov told a press conference "Consequences of tax on deposit account", ForUm correspondent reports.

According to the MP, the proposed tax would not reduce the loan interest rate, but would cause the outflow of funds from the banks, and thus to a shortage of funds and increase in loan interest rate. "The high cost of loans is not connected with the fact that banks borrow funds from the population at high interest rates, but with the fact that they are used to make enormous profits, avoiding any risk," he said.

He added that only a man, distant from the realities of life, might suggest that by forcing people to withdraw money set aside for a rainy day from deposit, you can create an incentive for consumption. "The owners of solid deposits simply withdraw their funds abroad, and the entire burden of the tax will fall on ordinary people," the parliamentarian lamented.

Kilinkarov believes cynical a statement that tax solves issue of filling the Pension Fund. "In fact, the citizens will have to pay double fee to the PF, and retirees will index their pension at own expense. In general, such a tax is unfair and should not be introduced. Money, which a tax is to be imposed on, is honestly earned by people," Kilinkarov said.


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