Crisis of the Russian Economy: Putin Instructed to Significantly Increase Taxes from 2026

Crisis of the Russian Economy: Putin Instructed to Significantly Increase Taxes from 2026

According to ХВИЛЯ: The economy of Russia is in crisis, manifested by a decline in industry and an increase in war expenses. Vladimir Putin has instructed the government to significantly increase tax revenues from 2026 in order to cope with current economic difficulties. Economic growth in Russia has virtually stopped, and the industrial sector has entered a phase of recession.

New Requirements from the Russian Government

Among the new requirements of the Russian government is an increase in the value-added tax (VAT) and the effective abolition of the simplified tax system. This indicates the seriousness of the situation, as the current economic situation is assessed as stagflation, which combines rising prices with falling real incomes of the population.

As noted by the Center for Countering Disinformation, 'prices are rising while real incomes are falling.'

Putin's demand to 'significantly increase' tax revenues is a response to the challenges faced by Russia. The situation in the country requires urgent measures, as economic problems become increasingly pressing.

The tax increases planned for 2026 could significantly affect the business environment in Russia, as enterprises may face additional financial burdens. This, in turn, could deepen economic stagnation and lead to further reductions in investment, negatively impacting the pace of economic recovery.

Given the rising costs of war and the restrictions imposed by Western sanctions, the Russian government finds itself in a difficult situation that requires urgent solutions to stabilize the economy.