INSUBCONTINENT EXCLUSIVE:
year at a time when government spending on the war in Ukraine continues to soar.Amid initial media reports earlier this year that tax reform
would not see any tax hike with the proposed changes
Likewise, the increases would not apply to men fighting in Ukraine, some of whom have seen their salaries balloon over the past two
years.The average monthly income in Russia for 2024 was 74,854 rubles ($830), according to the state statistics agency Rosstat
In other words, Russians earned on average almost 900,000 rubles ($9,960) last year, less than twice the minimum threshold for the lowest
of passive income such as dividends and real estate, are unlikely to feel much of a direct impact
state programs that support business, technology and infrastructure projects.Analysts at Tinkoff Bank say they expect the corporate tax
increase to exert some pressure on the stock market by reducing future dividends and capitalization across various sectors
significantly increasing inflation, thereby reducing long-term interest rate risks for companies.Why raise taxes now?Overall, the Finance
But the 13% flat rate, introduced in 2001 to combat widespread tax avoidance, was unlikely to remain in place indefinitely, and discussions
Western sanctions and the war.Government spending has outpaced revenue by hundreds of billions of rubles, pushing the country into annual
In 2022 and 2023, Russia ran a combined budget deficit of around 6.5 trillion rubles ($71.9 billion)
This year, the government has budgeted for a shortfall of 1.6 trillion rubles ($17.7 billion), equivalent to around 0.9% of GDP.Moreover,
the loss of lucrative energy sales to Europe, combined with the substantial increase in military spending, has forced Russia to dip into its
sovereign wealth fund and borrow from state-owned banks to cover the shortfall over the past two years
taxes is also a way to address an overheating economy
With much more money flowing into the economy, prices have also been driven up
are businesses reacting?Lawmakers in the lower-house State Duma have indicated that they are determined to pass the tax reforms by the end
of the current parliamentary session, which was extended earlier this week to Aug
This extension, some speculate, may indicate that the government anticipates a drawn-out discussion over the reforms.Business groups are
So that businesses have the opportunity not only to participate in the discussion of amendments to the proposed bill but also to calmly
business association Opora.While industry groups will have their chance to weigh in on the discussion in the weeks ahead, analysts say the
want to try to beat the West in Ukraine, and part of your competitive advantage is the fact that your industry can turn out shells at
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