Putin's conflict will soon impact the tax payments of Russians.


President Vladimir V. Putin of Russia is planning a significant tax increase on corporations and high earners, driven by the escalating costs of the war in Ukraine and the need to secure funding for future geopolitical moves. This move reflects Putin's firm control over the Russian elite as he begins his fifth term in office. The proposed tax hike demonstrates Putin's confidence in his political control and the country's economic resilience, as well as a willingness to risk alienating some sectors of society to fund the war. The tax overhaul, the first in over a decade, aims to ensure a more equitable tax burden and stimulate businesses, while also likely including special incentives for certain groups, such as those involved in the war effort or families with multiple children. The planned tax policies illustrate how Russian society, from business executives to mobilized soldiers, is being drawn into the war effort, with Moscow's defense expenditures skyrocketing. The government is also considering raising the tax on corporate profits to 25% from 20% to increase revenue from sources other than the oil and gas sector. Overall, the tax increase is seen as a strategic move to secure funds for the war and future geopolitical endeavors.



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