Putin's tax reform: how it will affect the economic situation of Russians

Putin's tax reform: how it will affect the economic situation of Russians Melania Golembyovskaya

How tax reform will affect Russians/Collage 24 Channel

Vladimir Putin initiated tax reform, but said nothing about it speaks. This topic is not socially pleasant, so the Russian dictator does not touch upon it. Tax reform will bring several problems for Russians.

Doctor of Economic Sciences Igor Lipsits told 24 Channel that due to tax reform, taxes for business will increase, and the Russian elite will also feel it. He also spoke about the fate of the ruble, which is holding up thanks to a reduction in imports.

Why Putin doesn’t talk about reform

According to Lipsits, the tax system is an unpleasant social issue in Russia. Previously, the Russian dictator said that Russia has a wonderful tax system, and then it turns out. that there is an urgent need to introduce tax reform and raise taxes: from 20% to 25% for business.

Such a tax will be not only for big people, but also for small business. Also, small and medium-sized businesses that operated under simplified schemes will have to pay more than 400 billion rubles in tax in 2025.

This is inconvenient and unpleasant for Putin, and he “put this socially undesirable topic out of quotation marks” and does not talk about it,” noted the Doctor of Economic Sciences.

Tax reform will begin in 2025. Lipsitz said that if next year it turns out that tax reform failed to raise enough money, the Kremlin will take the next steps.

Problem for Russian elites

This tax system will be felt and Russian elites, which Putin would not really like. The worst thing for the Russian elite is the introduction of privatization and nationalization by the Russian dictator.

He (Putin – Channel 24) made it clear “that he is ready to seize even the largest Russian companies from Russian billionaires and use it all to pay off budget problems, in order to then resell it again and get money,” noted the Doctor of Economics.

The fate of the Russian ruble

Lipsitz explained that the fate of the ruble depends on many factors. The ruble is now not a free market currency that is convertible; its exchange rate is regulated by the Central Bank.

However, there is a reason why the ruble is still holding strong – Russia has begun to reduce imports, and imports are what fills store shelves and makes it possible to produce a small amount of products. Therefore, a reduction in imports is a threat to the production of goods by Russian companies. This is all happening due to sanctions.

People are reducing purchases of imported products and the demand for currency is falling. That's why the ruble is holding. However, this is a bad story, because it is better for the Russian budget if the ruble is devalued, then they will receive large taxes on imports. Therefore, it will not last long, over time it will be quietly lowered,” added the Doctor of Economic Sciences.

Latest news about the Russian economy

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• European Union Special Representative for Sanctions David O'Sullivan calls the main reason for the growth of the Russian economy – a significant infusion of funds that are “taken away” from important industries. This will cause many difficulties for Russians in the future. Russia lost a significant number of specialists who went abroad or died in the war.