Desperate Putin plotting to ‘bleed Russia dry’ with brutal tax rise to fund war | World | News

Vladimir Putin is said to be considering imposing a tax hike on Russian citizens to continue to fund its war machine, as fighting continues to rage in Ukraine.

The Kremlin could ramp up corporation tax and income tax on high earners, as it scrambles to raise as much as four trillion roubles (£34bn), according to Bloomberg.

For those earning more than five million roubles (£42,000), their income tax may jump from 15 percent to 20 percent. Meanwhile, corporation tax may leap five percent from 20 percent to 25 percent.

Up to five million roubles, Russian citizens pay 13 percent tax on their annual income. It rises to 15 percent for anything above that.

However, under the reported plans, the 15 percent threshold would lower to one million roubles and incomes above five million roubles would jump to 20 percent.

Putin has vowed to reform Russia’s tax system when he returns to office for another six-year term, following the country’s elections this week.

According to the Telegraph, Russia’s defence spending has tripled across the board following the invasion of Ukraine and it’s nearing 8 percent of national output. This is close to what it was under the Soviets.

Meanwhile in Ukraine, officials are facing 12 years in prison for embezzlement of £31m worth of funds meant for the purchase of mortar shells.

Officials have said that five people have been charged, with one apprehended attempting to cross the border.

According to the country’s security service, staff at a Ukrainian arms company conspired with defence ministry chiefs to steal almost $40million (£31.1million) meant to buy 100,000 mortar shells for the war against Putin’s forces.

This comes as Kyiv tries to get a handle on corruption in its attempt to further its prospect of EU and NATO membership. Top brass in both institutions have called for widespread reforms to reduce corrupt practices before the war-torn country can be admitted.