Kremlin prepares Russians for poverty: intelligence reports massive tax hikes and benefit cuts

The Foreign Intelligence Service of Ukraine reported that the Russian authorities are preparing the population for a sharp deterioration in living standards due to a record budget deficit, which will reach 5.74 trillion rubles in 2025. The Ukrainian intelligence service reported this on its Telegram channel, writes UNN.

DetailsAccording to intelligence, to close the financial hole, the Kremlin plans to raise taxes, cut social programs, and shift responsibility for unpopular decisions to governors and senators, using them as “lightning rods.”

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In Russia, an increase in VAT from 20% to 22% is officially planned, a reduction in the threshold for the simplified taxation system, and a review of benefits for self-employed citizens who currently pay only 4-6% tax. The self-employment regime may be abolished as early as 2026, forcing people to either register as entrepreneurs or pay the full tax rate 

At the same time, the introduction of social contributions for the unemployed, freelancers, and unofficial workers is being considered. Formally, this is called “social justice,” but in fact, the initiative only increases financial pressure on Russians.

The Kremlin also plans to cut social spending: maternity capital will be paid only for the third child, and “family mortgage” programs will be shifted to the regions. Local authorities, most of whom already have deficit budgets, will be forced to raise transport taxes and parking fees.

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