The Russian Ministry of Finance presented yesterday a proposal to introduce tax increases for high-income persons, as well as to raise of tax rates on corporate profits, DPA reported, quoted by BTA.
The current top income tax rate is set to increase from 15% to 22%. The lowest tax rate will remain at 13% for incomes up to 2.4 million rubles ($26,000) a year. In addition, the tax rate on corporate profits will increase from 20% to 25%.
According to the ministry, the gradual increase will affect about 3% of employees.
The above tax rate applies only to annual incomes exceeding 50 million rubles.
The self-employed and military personnel in war zones with relatively high incomes will be exempt from the changes.
Revenue from these increased taxes will allow Russia to shore up its reserves, which have dwindled due to Russia's protracted war against Ukraine, DPA said.
According to the finance ministry, Moscow intends to spend the additional tax revenue on projects related to the family, children and youth, as well as on housing and road construction and on the development of the IT sector.
The biggest tax increases so far under Putin have yet to be approved by parliament.