The Russian government is set to approve a tax increase proposed by the finance ministry, citing the need for increased revenue due to spending on the war in Ukraine. The tax reform includes higher income tax rates for the wealthiest individuals, with new tiers for different income brackets. The reform is expected to affect approximately 2 million taxpayers and aims to generate revenue for socioeconomic development.
The tax increase, which excludes dividends, focuses on salaries and also includes a raise in corporate profit tax rates. This measure, combined with other reforms, is estimated to bring in billions of euros in revenue for the government. The move aligns with Putin’s emphasis on social justice, especially in times of conflict, to maintain political stability.
‘Social Justice’
Putin’s push for social justice resonates with the tax hike on the wealthy in Russia, signaling a commitment to fair distribution of resources amidst global uncertainties. The tax reform reflects the government’s strategic approach to budget allocation for national projects and long-term economic sustainability.