Russia Plans Tax Increase to Ease War-Related Strains on Budget

Russia plans to increase its consumption tax and expand the number of companies required to pay it. This move is aimed at addressing the growing fiscal gap caused by the ongoing war in Ukraine, which has placed significant strain on the country's budget. The tax hike is expected to generate additional revenue to help alleviate the financial burden. However, the article does not provide details on the specific tax rate or the extent of the expansion in the tax base. The decision to raise taxes comes as Russia grapples with the economic consequences of its military intervention in Ukraine. The conflict has disrupted trade, reduced government revenue, and increased spending on defense and social support measures. Overall, the tax increase is a strategic move by the Russian government to shore up its finances and manage the economic challenges posed by the war. The article does not delve into the potential impact on Russian citizens or the broader economic implications of this decision.