Russia wants to raise income tax for rich inhabitants in the country, as a way to help the government fill the treasury during the war in Ukraine.
The bill, which was approved in the final third reading of the Duma, must be approved by the upper house and signed by President Vladimir Putin to become law.
The proposal would mean a 13 percent tax on incomes up to 2.4 million rubles, equivalent to almost 290,000 kronor, per year. For incomes above this amount, a steadily higher tax rate would apply, up to a maximum of 22 percent for incomes over 50 million rubles.
Putin said that the income tax would not affect more than three percent of Russian taxpayers. At the same time, the bill proposes that companies should pay more in income tax, from the current 20 percent to 25 percent.
According to the proposal, it is expected to bring in more than 2.6 trillion rubles extra to the state treasury by 2025.
A flat tax of 13 percent was introduced after Putin's first election in 2000, as an attempt to combat tax evasion and increase state revenue. In 2021, Russia changed the system so that individuals earning more than five million rubles per year would pay 15 percent on the amount above the sum.
