Putin raises taxes and tariffs: every Russian will pay for the war in Ukraine

Putin's maniacal obsession with the war in Ukraine has awakened a fiscal maniac in him. These are the conclusions that can be drawn after reading the Russian government's tax desires.

1. At the center of the tax increase in Russia is the government's desire to increase VAT from 20% to 22%. Hundreds of commentators have written that this will lead to inflation. However, the VAT increase is a short-term factor for price increases that the Russian population will easily swallow, just like the freezing of foreign currency deposits in banks and the increase in utility tariffs.

But what can really lead to discontent is the actual elimination of the simplified taxation system. Few people have noticed, but the Russian government is proposing to lower the threshold for simplified taxation from 60 million rubles to 10 million. This kills optimization through the fragmentation of businesses and gray traffic from non-cash rubles to cash. In practice, this is guaranteed to lead to a strong rise in prices in the service sector, but it is unlikely to kill conversion centers. As Russian practice shows, tariffs will simply increase .