Russia to increase income tax which may engage additional US$14.2 billion

Russia has hinted that the income tax may increase from 20% to 25% which, according to the Russian Treasury, may yield additional US$14.2 billion to the aggressor’s budget.

Source: Reuters

Details: Russia’s ruler Vladimir Putin suggested raising taxes for companies and wealthy individuals, which caused a reaction of the Russian Ministry of Finance.

The ministry considers implementing an increased income tax but cancelling exchange rate export duties. Russia imposed export duties linked to the rouble-dollar exchange rate from 1 October 2023, until the end of 2024, on a wide range of goods, while a one-off profit tax in 2023 yielded US$3.53 billion for the treasury.

Anton Siluanov, Russian Finance Minister, hinted at increasing a cooperative tax rate up to 25%, like in China and Iran. The 5% tax increase would bring an additional 1.9 trillion roubles to the treasury, estimated Andrei Klepach, chief economist at state development bank VEB.

Ekonomichna Pravda

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