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Russia's lower house of parliament approves sweeping tax hikes in final reading

Published 07/10/2024, 03:25 AM
Updated 07/10/2024, 04:26 AM
© Reuters. A general view shows the State Duma, the lower house of parliament, in Moscow, Russia January 20, 2017. Picture taken January 20, 2017. REUTERS/Maxim Shemetov/File Photo

MOSCOW (Reuters) - The lower house of Russia's parliament on Wednesday gave its final approval to tax hikes proposed by the finance ministry that will see extra progressive income tax rates, corporation tax raised to 25% from 20% and new mineral extraction taxes.

The tax hikes, mostly targeting companies and the wealthy, may add an extra $30 billion to next year's budget revenue, allowing Moscow to further ratchet up spending and finance its war in Ukraine without compromising fiscal stability.

© Reuters. Russia's Finance Minister Anton Siluanov attends a plenary session of the State Duma, the lower house of Russian parliament, in Moscow, Russia July 10, 2024. Russian State Duma/Handout via REUTERS

Lawmakers in the State Duma, Russia's lower house of parliament, approved the measures in the third and final reading.

The bill's passage through the upper chamber, the Federation Council, and its signing by President Vladimir Putin are usually formalities.

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