Raising the value added tax for businesses will bring the aggressor country’s budget $14.2 billion, economists believe.
The ruling regime of Russia is preparing to increase the VAT rate for businesses from 20% to 25% and for individuals whose annual income exceeds 27 thousand dollars. The publication reports this with reference to documents from the Ministry of Finance of the Russian Federation. Kommersant.
The Russian Ministry of Finance has sent bills to the government providing for tax reform, in particular, increasing the value added tax for businesses from 20% to 25% and introducing a progressive personal tax that you
Economists calculate how much the increase in value added tax for businesses will bring to the budget of the aggressor country. According to them, we are talking about an additional $14.2 billion.
The progressive rate of personal income tax will be calculated as follows:
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for income from 2.4 to 5 million rubles (27 thousand dollars – 56 thousand dollars) per year – 15%;
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for income from 5 to 20 million rubles (56 thousand dollars – 224 thousand dollars) per year – 18%;
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for income from 20 to 50 million rubles (224 thousand dollars – 562 thousand dollars) per year – 20%;
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for profits of more than 50 million rubles (more than 562 thousand dollars) per year – 22%.
Russia previously did not have a progressive scale of personal income tax, and from 2001 to 2021 they paid a flat rate of 13%. However, in 2021, the tax is increased to 15% for individuals with income above $56,000 per year.
Now the amount of personal income tax depends on the amount of income. How much money a progressive tax for individuals can bring to the Russian budget is unknown.
As we have already written, the ruling regime of the Russian Federation has been preparing, for more than 20 years, an increase in taxes for citizens to finance the record costs for the war of occupation in Ukraine. In particular, after the presidential election in Russia they plan to increase the personal income tax (NDFL) to 20%, and the profit tax to 25%.
Let’s add that inflation in Russia at the end of 2023 will reach 7.4%.
Source: korrespondent
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