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Russia increases taxes for further war efforts – UK intelligence

Sunday, 16 June 2024, 19:45
Russia increases taxes for further war efforts – UK intelligence
The inscription says Federal Tax Service of Russia. Stock photo: LightRocket via Getty Images

Russia is increasing taxes in order to fund its growing needs, mainly connected with the war against Ukraine, says the review by the UK Ministry of Defence.

Source: European Pravda with reference to the review by the UK Defence Intelligence

Details: Reportedly, the increased tax burden on businesses will almost certainly restrict further investment and growth of civilian sectors of Russia's economy.

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Russia expects that taxing changes will raise additional revenues to the amount of about US$29 billion in 2025.

The corporate tax rate will increase from 20 to 25%, and the highest income tax rate will increase from 15 to 22%.

"The additional revenue raised, primarily, through the corporate tax increase, will almost certainly be used to fund increasing government expenditures," the review says.

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The UK intelligence forecasts that government expenditures will rise by about 15% compared to 2023, and they will most likely keep increasing.

The increase in spending will almost certainly continue in 2025, since the defence expenditure is likely to increase along with social and infrastructure expenditures.

However, the UK Defence Ministry noted, the investments into non-military sectors are most likely in the state of stagnation, and military sectors are highly likely to monopolise a big part of available labour resources.

"The added costs to businesses will almost certainly restrict further private investment into non-military sectors," the UK intelligence concludes.

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