UPDATE 1 — Russia plans array of tax hikes in 2027 — 29 to fund military spending
(Adds details, quote, changes sourcing) MOSCOW, Sept 24 (Reuters) — The Russian government projected a budget deficit equal to 2% of the gross domestic product for the next three years and proposed an array of tax hikes to sustain the military expenditure, the Finance Ministry's materials showed on Thursday. The Finance Ministry said it had submitted the draft budget to the government, which will review it before October 1 and send it to the parliament. It said that defence and security needs were a "strategic priority" for the new budget. "The planned resources will enable the equipping of the armed forces with necessary weapons and military equipment, the modernisation of defence enterprises, the payment of monetary allowances to military personnel," the ministry said. The costs of the 4-1/2-year war in Ukraine have been increasing for Russia, with the economy slowing sharply last year and the government having to raise taxes and increase borrowing to finance the war effort. The ministry proposed hiking taxes on what it described as excess profits in the metals and fertilizer sectors due to high global prices, as well as taxes on trans-border electronic trade. It had also propose
(Adds details, quote, changes sourcing) MOSCOW, Sept 24 (Reuters) — The Russian government projected a budget deficit equal to 2% of the gross domestic product for the next three years and proposed an array of tax hikes to sustain the military expenditure, the Finance Ministry's materials showed on Thursday. The Finance Ministry said it had submitted the draft budget to the government, which will review it before October 1 and send it to the parliament. It said that defence and security needs were a "strategic priority" for the new budget.
"The planned resources will enable the equipping of the armed forces with necessary weapons and military equipment, the modernisation of defence enterprises, the payment of monetary allowances to military personnel," the ministry said. The costs of the 4-1/2-year war in Ukraine have been increasing for Russia, with the economy slowing sharply last year and the government having to raise taxes and increase borrowing to finance the war effort. The ministry proposed hiking taxes on what it described as excess profits in the metals and fertilizer sectors due to high global prices, as well as taxes on trans-border electronic trade.
It had also proposed raising tax rates on so-called "passive" personal income from investment in securities, property sales, and interest from bank deposits. It said that the measure would affect about 4 million people. com;)