Vladimir Putin’s latest political move a hint military machine under threat | World | News

Vladimir Putin has inadvertently signalled that Russia‘s finances might be in a worse condition than previously thought.

Moscow has been heavily relying on its oil sales reserves to keep funding the war in Ukraine after international sanctions pushed many investors to turn away from the country.

But a major tax amendment the Kremlin approved this week has been interpreted as an acknowledgement that the Russian economy might ultimately be unable to sustain the conflict in the long term.

Under the new financial plan, the Russian government is hoping to collect more money from high earners and businesses to fill up its ailing coffers.

The amendment would introduce a new progressive income tax and raise corporate tax in a bid to collect an extra 2.6 trillion rubles (£22billion).

For some earners, the tax rate could spike as high as 22 percent under the proposed changes.

The Kremlin has sought to shield the public from the brunt of the pressure of military demands – and to avoid potentially dangerous backlash.

Moscow has introduced a series of subsidies and social programmes since it launched its invasion of Ukraine.

Russia‘s Finance Minister Anton Siluanov also insisted that soldiers and poorer families with children would get exemptions to the tax increase.

Businesses would also see the tax demands increase, as corporation tax would go up from the current 20 percent to 25 percent.

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