{"id":73555,"date":"2025-05-04T10:00:09","date_gmt":"2025-05-04T10:00:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/73555\/"},"modified":"2025-05-04T10:00:09","modified_gmt":"2025-05-04T10:00:09","slug":"russia-economy-meltdown-as-income-tax-to-soar-by-180-and-businesses-declare-bankruptcy-world-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/73555\/","title":{"rendered":"Russia economy meltdown as income tax to soar by 180% and businesses declare bankruptcy | World | News"},"content":{"rendered":"

Russia is facing an economic meltdown as the Kremlin scrambles to find funds to maintain its war machine in Ukraine<\/a>. The State Duma – the lower house of the Federal Assembly – announced plans to revise the federal budget as there are currently significant discrepancies between revenue and spending. This could prompt tax increases<\/a> for inviduals and businesses to stablise the economy as the deficit is predicted to soar by a shocking a 220%.<\/p>\n

Government plans showed a proposed personal income tax increase of 180% and a corporate income tax increase of 110%. VAT is also set to shoot up by 17%, putting many small and medium-sized businesses at the risk of bankruptcy. The Russian Intelligence Service said: “Up to 30% of small and medium-sized businesses in Russia<\/a> are already on the verge of bankruptcy. By the end of this year, this figure is expected to increase to 50%<\/a>.”<\/p>\n

Despite this, Russian Finance Minister Anton Siluanov said “the priorities of the Russian budget remain unchanged” and “all national development goals will be met regardless of external conditions and factors”.<\/p>\n

The Foreign Intelligence Service, however, said Siluanov was downplaying the importance of oil exports on the Russian economy, which significantly lost value in the first quarter of 2025.<\/p>\n

Russian oil at the Primorsk and Novorossiysk ports currently cost around \u00a335 per barrel, far behind the predicted value of \u00a352<\/a>.<\/p>\n

If the annual decline in the price of Russian oil reaches 30%, this could deal a \u00a330 billion blow to the economy, which is effectively equal to the budget deficit for the year.<\/p>\n

The Foreign Intelligence Service also accused Moscow of “manipulating” statistics to hide just how poorly the economy is doing, particularly in the case of inflation.<\/p>\n

It said: “In the context of manipulating official statistics, the situation is similar with the inflation rate. The Russian government sets the figure at 7.6%, while, according to our estimates, real inflation in Russia<\/a> already exceeds 20% today.”<\/p>\n

This comes after Kyrylo Shevchenko, a former Head of the National Bank of Ukraine<\/a>, claimed gas bills would rise more than 76%<\/a> since the full-scale invasion in February 2022.<\/p>\n

He added that “sharp hikes” in the cost of gas, electricity and housing overall would soar 40% in three years.<\/p>\n

He wrote on X: “With real wages stagnating and inflation rising, Russians will pay more for less – while the Kremlin pours billions into war.<\/p>\n

“To make matters worse, Russia<\/a> slashed its 2025 oil price forecast to $56\/barrel – the lowest since COVID<\/a>-19. Russia<\/a> is burning through its future to sustain war. And of course, the people are footing the bill”.<\/p>\n","protected":false},"excerpt":{"rendered":"Russia is facing an economic meltdown as the Kremlin scrambles to find funds to maintain its war machine…\n","protected":false},"author":2,"featured_media":73556,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[36459,1700,22664,36458,12,2661,36460,332,16490,2044,36461,36463,36462,36465,36464,26],"class_list":{"0":"post-73555","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world","8":"tag-business-bankruptcy","9":"tag-economy","10":"tag-income-tax","11":"tag-income-tax-increase","12":"tag-news","13":"tag-oil","14":"tag-oil-price-decline","15":"tag-russia","16":"tag-russia-economy","17":"tag-russian-economy","18":"tag-russian-economy-meltdown","19":"tag-russian-income-tax","20":"tag-russian-inflation","21":"tag-russian-oil-prices","22":"tag-russian-vat","23":"tag-world"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114448985233779286","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/73555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=73555"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/73555\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/73556"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=73555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=73555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=73555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}