Putin Signals Tax hikes to Close Russia’s Budget Gap

Russian President Vladimir Putin signaled on Thursday that he is open to raising certain taxes, especially on the wealthy, as the government struggles to make ends meet in the fourth year of the war in Ukraine, Reuters reported. The draft budget is expected to be submitted to parliament on September 29. Sources told Reuters that the government is considering raising the value-added tax rate to keep the budget deficit in check and maintain reserves. Meeting with leaders of parliamentary factions, Putin said that measures such as a luxury tax or a higher tax on stock dividends could be "reasonable" during the war, but he urged caution. He did not mention other taxes. Putin pledged no major changes to the tax system before 2030 following the tax hikes introduced in 2025. He asked the government on September 5 to increase revenues through higher productivity, not taxes.