Tax hikes to give Russia fiscal headroom to further increase spending

LONDON, May 30 (Reuters) – Russia’s proposed tax hikes for companies and the wealthy, which may add an extra $30 billion to next year’s budget revenues, will allow Moscow to further ratchet up spending, including on its war in Ukraine, without compromising fiscal stability.

The finance ministry insists the tax hikes, proposed on Tuesday, are fair and target Russia’s wealthiest. It says tax changes should solve national problems, reduce inequality and help develop Russia’s regions.