Russia plans tax increases for high earners and businesses

Russia plans tax increases for high earners and businesses

The subject, which had already been raised during the presidential election, is now taking a concrete turn: the Russian Ministry of Finance presented on Tuesday evening, May 28, the bill reforming taxation for individuals and businesses.

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From our correspondent in Moscow,

Corporate taxation must therefore increase from 20 to 25%, but above all, no more almost single tax rate at 13% for individuals. Only very high incomes were taxed at 15%, a decision taken in 2001 by Vladimir Putin.

The objective is to subject the wealthiest to more tax pressure, with thresholds depending on income: 18, 20 and even 22% for those at the top of the pyramid. These increases, the promise of power, will affect a minimum segment of society, two million people.

Officially, this is a reform for greater tax justice, and to slow down an overheating economy, boosted by defense spending. In reality, it must also, and undoubtedly above all, be used to replenish state coffers, and finance the Kremlin’s war in Ukraine.

A sign among many others that the government continues to make this war its essential priority: tax exemptions are provided, of course, as always for families, but – and this is new – also for Russian combat soldiers.

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