Russia’s slowing wartime economy pushes Kremlin to increase taxes and fees
Summary
Russia's economy is slowing after two years of growth driven by military spending on the war in Ukraine. To make up for lower oil revenues and a rising budget deficit, President Vladimir Putin's government plans to increase taxes and fees. This includes raising the value-added tax (VAT) and adding new charges on goods like alcohol and vehicles.Key Facts
- Russia's economy has slowed down after strong growth due to war-related spending.
- Oil revenues have decreased, and defense spending has stopped growing.
- The Russian government plans to raise the VAT from 20% to 22%.
- The change is expected to add 1 trillion rubles ($12.3 billion) to the budget.
- More businesses will have to collect VAT, impacting smaller companies.
- Taxes on alcohol, cigarettes, and vapes are set to increase.
- Fees for driver’s licenses and imported cars will be higher.
- There is a proposal for a tech tax on expensive digital equipment.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.