Jump to content

Recommended Posts

Posted (edited)
6 hours ago, atomheartbevo said:

G7GCsNoXYAA1518?format=png&name=small

 

5 hours ago, Parliament said:

Even by Russian standards, that may not be sustainable.

Putin Signs Law Raising Russia’s Value-Added Tax to 22%

"President Vladimir Putin on Friday signed a major tax overhaul that will raise Russia’s value-added tax to 22% from 20% next year, a move aimed at closing the fiscal gap created by soaring military expenditures and falling oil and gas revenues amid Western sanctions.

More small businesses will also be swept into the tax system under additional changes. The annual revenue threshold for companies required to pay VAT will drop from 60 million rubles ($732,000) to 10 million rubles ($122,000).

Businesses have indicated in surveys that they plan to pass the tax hike directly onto consumers, who have already been strained in recent years by surging inflation linked to war spending.

Economists, including those at the Financial Ministry, have said they anticipate a modest rise in inflation as the VAT hike takes effect starting next year.

VAT is one of the government’s most important revenue sources, generating 11.5 trillion rubles ($148 billion) from January through October, or more than 38% of total federal revenue.

Under the changes, select food products, medicines and children’s goods will continue to be taxed at a reduced 10% rate. But certain milk-based products made with milk-fat substitutes, such as processed cheeses and spreads, will now be taxed at the full 22% rate.

Russia last raised VAT in 2019, when it increased the rate to 20% from 18%."

I have no understanding of Russia economics and their income and taxes, but dropping the threshold for taxing small business' from $732,000 to $122,000 seems like that puts a lot of mom & pop type business under an onerous burden, much worse than whey have seen the past 3 years.  Selling gold reserves and crippling small business' already struggling while cutting basic services to the general populace does not seem like a recipe for success. 

I have seen a lot of stories that virtually every sector of the Russian economy has been affected to the point that workers are not getting paid, are being furloughed and have no reason to work because of non-existent supply chains.  There were rumors that unpaid shipbuilding workers may have sabotaged a new ice breaker/tug boat in St. Petersburg that was critical for moving large ships through the frozen water of the Baltic.

The Russian economy ...

 

 

Edited by PTINS
double image
  • Hook 'Em 3

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...