• 11/25/2024

Putin gives officials two months to raise taxes for Russians

Pravda Ukraine

Russian Kremlin leader Vladimir Putin has instructed Russian officials to approve a progressive personal income tax scale by the end of August.

Source: The Moscow Times

Quote: “As for changes in the tax system, they should be finally worked out by the government and the State Duma – and somewhere in August, I think, their final adoption is planned,” said the Russian ruler.

He said the changes will affect no more than 3.2% of taxpayers. 

Prior to this, the Budget and Taxes Committee of the Russian State Duma approved amendments to the Tax Code providing for transition to a progressive personal income tax scale. It is expected that the bill will be considered on 20 June. If adopted, it will take effect on 1 January 2025.

Background:

  • In March 2024, it was reported that the Russian government planned to increase taxes for population and businesses after the presidential elections, which would allow an additional budget revenue of over US$27 billion to increase spending on the war.
  • In May, it became known that Russia was preparing to raise the VAT rate for enterprises from 20% to 25%, as well as for individuals whose annual income exceeded US$27,000.

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https://www.pravda.com.ua/eng/news/2024/06/18/7461410/