What are the consequences for the economy?
The biggest change is a planned increase in value-added tax (VAT) from 20% to 22%, designed to help plug a widening deficit caused by soaring defense spending and shrinking oil and gas revenues under Western sanctions.
More businesses will be required to pay VAT. The minimum annual revenue threshold for businesses to make payments is set to fall from 60 million rubles ($732,000, according to spot foreign exchange market data published by Reuters) to 10 million rubles ($122,000).
The government also plans to target the betting industry with a 5% tax on wagers and a 25% levy on betting companies’ profits.
