The business environment in Russia does not believe that the increase in the tax burden is temporary and expects a further tightening of tax conditions in the next five years. The information was reported by Reuters, quoting Aleksandr Shokhin, the president of the Union of Industrialists and Entrepreneurs of Russia — the country’s largest business organization, led by billionaires included in the Forbes rankings.
“The business environment is quite pessimistic,” Shokhin said at a tax forum. He recalled that in December, at the Council for Strategic Development, Vladimir Putin said he hoped the VAT increase would be temporary and that, over time, Russia could return to lower rates. However, according to Shokhin, 40% of companies expect an increase in the tax burden over the next five years.
Amid the war in Ukraine, Russian authorities have increased the value-added tax by two percentage points this year, to 22%, to finance the army and the police, despite repeated statements from the country’s leadership that it will not increase the tax pressure. In December, Putin stated twice that the VAT increase would be temporary.
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