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Putin set to increase taxes to pay for war in Ukraine.
Russian president will ditch flat-rate tax regime for a tiered system to raise £26 billion per year for his war machine
Vladimir Putin plans to impose the largest tax rises on Russians since the 1990s to help pay for his war in Ukraine.
He will ditch his once-feted flat-rate tax regime for a “progressive” tiered system to raise an extra £26 billion per year for his war machine.
Russia’s finance ministry submitted the new tax regime proposals to parliament this week, claiming they would “ensure stability” and “fairness” but analysts said they were a simple raid on earners.
Putin has forced the Russian economy to bend to his war by increasing spending on his military to 7 per cent of Russia’s GDP, a third of all government spending, as he cuts cash for social projects.