The first reading of the Russian State Duma approved the largest tax increase in Russian history, and the budget revenue will increase significantly in the next six years

On June 20, the Moscow Times reported that the Russian State Duma adopted a package of amendments on first reading, This includes the largest tax increase in Russian history.

It is reported that the draft introduces a five tiered progressive individual income tax system, which is expected to be passed in August this year, and the reform will take effect on January 1, 2025.

It is expected that Russia's budget revenue will increase significantly in the next six years 16.8 trillion rubles (192.3 billion US dollars) 。

This amount is one third higher than the total size of the national welfare fund (12.75 trillion rubles or US $145.9 billion), and more than three times the current but unused portion (5.2 trillion rubles or US $59.5 billion).

As part of the amendment to the tax law, Russia introduced a progressive individual income tax system, which will affect citizens with a monthly income of more than 200000 rubles (2289 US dollars).

From 2025, Russia will The corporate tax rate was raised from 20% to 25%, Russian enterprises will turn over to the state treasury in the next six years More than 11 trillion rubles (about US $125.9 billion).

However, Russia's budget revenue and expenditure increased significantly, Pre It is estimated that the military expenditure in 2024 will account for about 40% of the total government expenditure.

The new tax increase plan is expected to be the national budget of Russia every year Increase revenue by at least $33.2 billion Will help Russia continue its war against Ukraine.

Earlier, Russian President Putin said that, Russia should approve progressive individual income tax before the end of August.