Russia could increase taxes for the first time because the intrusion of Ukraine to help plug a hole in the state spending plan, independent media outlet The Bell reported Wednesday, pointing out sources knowledgeable about the discussions.The Russian Union of Industrialists and Entrepreneurs (RSPP) has proposed raising the present 20% income tax on Russian companies by 0.5 portion points, according to The Bell.The initiative was supposedly a counter-proposal following Prime Minister Mikhail Mishustins demand that RSPP members pay a one-off amount of 200 billion rubles ($2.8 billion) to the government.Deputy Prime Minister Andrei Belousov told the state-run TASS news agency Wednesday that the federal government is talking about mandating big organizations to make a one-time voluntary contribution to the budget.Speculation about possible tax rises has magnified as Russia deals with substantial defense expenses in the middle of the Ukraine war and falling incomes-- in part the outcome of Western cost caps on Russian oil exports.
Russias budget deficit increased to 1.76 trillion rubles ($24.8 billion) in January, the Finance Ministry said Monday, its highest month-to-month level since 1998.
The Russian authorities have stated they expect the overall deficit spending in 2023 to be 2% of GDP.