How the Kremlin Decided to Sacrifice Small Business to Pay for War
Opinion | Last week, the Kremlin rolled out the message: “VAT saves the budget — everyone must become a savior.” By making the easiest tax to collect the main revenue source — raising value-added tax to 22% from 20% — officials acknowledged what many already suspected: with the civilian economy shrinking while the military eats an ever-larger share of spending, the state may no longer be able to raise what it needs without squeezing small businesses.
Opinion | Last week, the Kremlin rolled out the message: “VAT saves the budget — everyone must become a savior.” By making the easiest tax to collect the main revenue source — raising value-added tax to 22% from 20% — officials acknowledged what many already suspected: with the civilian economy shrinking while the military eats an ever-larger share of spending, the state may no longer be able to raise what it needs without squeezing small businesses.
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