Advertising
Supported by
The Russian president announced an increase in the source of revenue and corporate taxes that would help fund the war. This resolution reflects their concern about Russian policy.
By Paul Sonné
Reporting from Berlin
Russian President Vladimir V. Putin appears poised to institute a rare tax hike on companies and higher-income earners, a move that reflects the emerging prices of his war in Ukraine and the enterprise he exerts over the Russian elite as he embarks on a war against Ukraine. . fifth term.
The financial technocrats in Putin’s government favor new tactics to fund not only the war, but also a broader confrontation with the West, which will likely remain costly for years. Russia is spending about a third of its total 2024 budget on national defense spending this year, a massive buildup that comes rather as a result of a deficit that the Kremlin has struggled to control.
The proposed tax increase underscores Mr. Putin’s growing confidence in his policy on the Russian elite and in his country’s economic resilience, demonstrating that he is willing to threaten to alienate portions of society in order to fund the war. This would be the first primary tax reform in more than a decade.
“I think it’s a real sign of his comfort,” said Richard Connolly, an expert on the Russian economy at Oxford Analytica, a strategic research firm. “The fact that they’re doing this is that they’re looking to fix the space while the weather is good, or at least the walls from a fiscal standpoint. “
Military spending and high oil costs have boosted the Russian economy and raised wages, despite higher inflation and a shortage of hard work; This will most likely lead financial leaders to consider the current moment as the right time to impose tax increases.
We are retrieving the content of the article.
Please allow javascript in your browser settings.
Thank you for your patience as we determine access. If you’re in Reader mode, log out and log in to your Times account or subscribe to the full Times.
Thank you for your patience as we determine access.
Already a subscriber? Sign in.
Want all the Times? Subscribe.
Advertising