Putin suggests raising taxes on the rich

President Vladimir Putin suggested, last Thursday, the possibility of increasing taxes on wealthy individuals and companies, stating that a fairer distribution of the tax burden was necessary, while urging Russian businessmen to invest in Russiaaccording to Reuters.

“I propose to reflect on the modernization of our Tax systemabout a fairer distribution of the tax burden among those with higher personal and business incomes,” Putin said in a speech to politicians and other members of the Russian elite.

“At the same time, it is necessary to reduce the tax pressure on families through deductions, stimulating companies that invest funds in development, in the implementation of infrastructure and social projects,” he added.

Putin ordered the Government and the State Duma —legislative body of said country— to present specific proposals in the near future.

Entrepreneurs who invest in Russia must have their assets and property rights protected, Putin said, and taxes on Russian small and medium-sized businesses should be reduced.

It is worth remembering that, in 2020, the Russian president signed a law to raise the tax on those who had incomes exceeding 5 million rubles annually (about US$65,900).

In this way, the single rate was modified for the first time, from 13% to 15%.

This was one of the measures announced by the president to support the economy, which had been hit by the coronavirus.

The income tax reform, one of the main sources of financing of the federal budget, should provide an additional 60 billion rubles, according to the Russian president, and the resources would be used to treat children with rare diseases.

Years later, the Kremlin was forced to increase the tax burden on the production of Petroleum to alleviate the effects of Western sanctions, due to the invasion of Ukraine.

The rich ask to pay more taxes

• This year, 250 millionaires sent a letter to the Heads of State who participated in the World Economic Forum in Davos to call for tax policies that make the richest pay more taxes.
• “When are they going to tax extreme wealth? If elected politicians in the most important economies do not take action to resolve the terrible increase in inequality, the consequences will continue to be catastrophic for humanity,” they highlighted.