Russian President Vladimir Putin has proposed raising the income tax from 13% to 15% for wealthy citizens whose annual income exceeds five million rubles ($ 72,833). >
According to Reuters, Putin said, in a televised speech, that the change in the tax rate will take effect on January 1, 2021, and will bring an additional 60 billion rubles to Russia's treasury.
Moreover, recent data showed that the Russian economy contracted by 10.9% in May on an annual basis, after a steeper drop of 12% in April, when The closure prevailed in the country to combat the Corona virus.
The Ministry of Economy said that the pace of decline has slowed in the manufacturing and retail sectors.
In a related context, she pointed out that the economic recovery was affected by the result of a global agreement to reduce oil production from May 1. Oil and gas condensate production decreased last month by 14.5% year on year.
The ministry said that the gross domestic product contracted by 3.7% in the first five months of 2020 on an annual basis.
For the entire year 2020, the Ministry expects that the Russian economy is on the way to a contraction of 4.8%.
