Russia increases income taxes for the wealthy to help fund Ukraine offensive
Russian President Vladimir Putin on Friday signed a bill that raises income taxes for the rich, part of efforts to help fill government coffers depleted by the war in Ukraine. The tax hikes were being presented domestically as "systemic reforms".
Russian President Vladimir Putin on Friday signed off on a package of tax rises worth almost $30 billion, tapping workers and companies to contribute funds for his Ukraine offensive.
Moscow's spending has outrun revenue by tens of billions of dollars since it ordered troops into Ukraine in February 2022, helping the economy defy expectations of a deep recession but also pushing it into rare budget deficits.
Russia ran a budget deficit of around 3.2 trillion rubles ($36 billion) in 2023, equivalent to two percent of GDP.
Putin on Friday signed into law a set of amendments to Russia's tax code that includes increases on income taxes for high earners and corporate taxes paid by businesses in a bid to help plug the fiscal hole.
They were passed by Russia's rubber-stamp parliament earlier this week.
"The changes are aimed at building a fair and balanced tax system," Finance Minister Anton Siluanov said when the proposed changes were laid out in May.
He said the extra funds would bolster Russia's "economic well-being" and go towards a series of public investment projects.
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