A new wave of tax increases, set to begin in Russia next year, will bring an additional revenue of 2.3 trillion rubles to the budget by 2026, announced the Minister of Finance, Anton Siluanov, in his speech to the Federation Council on Monday.
He reminded that this mainly refers to an increase in the VAT rate from 20% to 22%, which, in turn, will impact companies and prices.
“The VAT can affect the financial results of companies; we estimate its impact on inflation at about 1%, something we take into account in our forecasts for wage and social payment indexing to the population,” Siluanov declared, quoted by Moscow Times.
According to the explanatory note to the budget law, authorities expect to collect an additional 1.189 trillion rubles next year through the VAT increase. “We estimate that the total value of tax changes, which will increase budget revenues, will be 2.3 trillion rubles next year,” Siluanov stated.
In addition to VAT, a radical tax reform for small businesses will bring additional revenue to the treasury: starting next year, the income threshold for operating within the simplified tax system will be reduced from 60 to 10 million rubles per year. Moreover, it is planned to eliminate tax benefits for IT companies, which currently pay insurance premiums at a reduced rate of 7.6% (this rate will increase to 15%).
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