Russia increases taxes for further war efforts – UK intelligence

Russia is increasing taxes in order to fund its growing needs, mainly connected with the war against Ukraine, says the review by the UK Ministry of Defence.

Source: European Pravda with reference to the review by the UK Defence Intelligence

Details: Reportedly, the increased tax burden on businesses will almost certainly restrict further investment and growth of civilian sectors of Russia's economy.

Russia expects that taxing changes will raise additional revenues to the amount of about US$29 billion in 2025.

The corporate tax rate will increase from 20 to 25%, and the highest income tax rate will increase from 15 to 22%.

"The additional revenue raised, primarily, through the corporate tax increase, will almost certainly be used to fund increasing government expenditures," the review says.

The UK intelligence forecasts that government expenditures will rise by about 15% compared to 2023, and they will most likely keep increasing.

The increase in spending will almost certainly continue in 2025, since the defence expenditure is likely to increase along with social and infrastructure expenditures.

However, the UK Defence Ministry noted, the investments into non-military sectors are most likely in the state of stagnation, and military sectors are highly likely to monopolise a big part of available labour resources.

"The added costs to businesses will almost certainly restrict further private investment into non-military sectors," the UK intelligence concludes.

Background:

• Earlier the UK intelligence reported that for offensive actions in the war against Ukraine, Russia has been actively using the "volunteer corps", which, by its features, is not very suitable for such tasks.
• In a previous review, the UK Ministry of Defence noted that reports of Russia's attempts to recruit African nationals to fight against Ukraine indicated that Moscow was already experiencing a shortage of recruitment resources among prisoners, a category that it had previously relied on to reduce public discontent. 
• UK intelligence also reported this week that the Russians had achieved a limited breakthrough in Chasiv Yar, Donetsk Oblast. 

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