In an effort to generate additional revenue to finance his war of aggression in Ukraine, which violates international law, Russian leader Vladimir Putin has signed into law amendments that will impose billions in tax hikes.
Since Russian troops invaded Ukraine in February 2022, government spending has significantly exceeded revenues. Not only is Russia having to spend vast sums on its war against neighboring Ukraine, but Western sanctions are also costing the world’s largest country by land area billions in revenue from commodity exports.
To get himself out of trouble, Putin signed a series of changes to the tax code on Friday, including increases in income tax rates for top earners and corporate tax for businesses.
Promote Russia’s ‘prosperity’
The moves would generate around 27 billion euros annually, according to estimates from the Finance Ministry. The plans were presented by the Finance Ministry in May. The amendments were passed by parliament earlier this week. Finance Minister Anton Siluanov said in May that the changes, known in the country as “systemic reforms,” were aimed at creating a “fair and balanced tax system.” The additional funds would boost Russia’s “economic well-being” and flow into a range of public investment projects.
Last year, Russia posted a budget deficit of around 33 billion euros, equivalent to around two percent of gross domestic product. A deficit of around 1.1 percent is expected for the current year.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
