FX.co ★ Putin Signals Tax hikes to Close Russia’s Budget Gap

Russian President Vladimir Putin indicated on Thursday a willingness to potentially increase certain taxes, particularly targeting the wealthy, as the Russian government grapples with financial challenges amid the ongoing war in Ukraine, now in its fourth year, as reported by Reuters. The preliminary budget is slated for submission to parliament on September 29. According to sources cited by Reuters, there is a consideration within the government to raise the value-added tax rate as a strategy to manage the budget deficit and preserve financial reserves. During a meeting with parliamentary faction leaders, Putin described possible measures like implementing a luxury tax or increasing taxes on stock dividends as "reasonable" given the wartime context, but also emphasized a cautious approach. He did not reference any other specific tax changes. Maintaining his stance from a previous commitment, Putin assured there would be no major alterations to the tax system before 2030, following tax increases set for 2025. On September 5, he urged the government to boost revenues by enhancing productivity rather than relying on tax increases.