Russia to increase income taxes for the wealthy

The current top tax rate on income is set to increase from 15 per cent to 22 per cent.

The lowest tax rate would remain at 13 per cent for incomes up to 2.4 million roubles (26,000 U.S. dollars) a year.

Additionally, the tax rate on corporate profits will increase from 20%l per cent to 25 per cent.

According to the ministry’s data, approximately three per cent of employees would be impacted by the gradual increases.

The top tax rate only applies to annual incomes exceeding 50 million roubles.

Self-employed individuals and military personnel in war zones with relatively high incomes would be exempt from the changes.

The revenue from these increased taxes will allow Russia strengthen its reserves, which have decreased due to Russia’s prolonged war against Ukraine.

According to the Ministry of Finance, Russia intends to spend the additional tax revenue on family, children and youth projects, as well as on the construction of flats and roads and the development of the IT sector.

The highest tax increases to date under Putin is yet to be approved by parliament. (dpa/NAN)