Page 82 - RusRPTAug22

With regard to the public finances as a whole, the balance between the deficit and spending increases can become even more difficult if revenues other than oil and gas tax revenues of the consolidated budget (budgets of the federation, regions and municipalities, and state social funds) slip significantly. They have made up about 80% of all revenues of the consolidated budget. The budgets of the regions, municipalities and social funds are largely dependent on income transfers from the federal budget, and they have very weak conditions for taking on debt.
6.1.2 Budget dynamics - specific issues...
Russia's war machine is still making plenty of cash from il exports. An increase in the rate of export duty charged on crude oil shipped out of Russia in July has helped the Kremlin to ride out a slump in revenue inflow in the first full week of the month. Duty rates increased by 23% between June and July, delivering an additional $1.42 a barrel to the Kremlin on every cargo shipment leaving the country. That boost helped Russia shrug off a 15% drop in crude shipments in the week to July 8, with revenues edging down by just $3M, or 2%. The G7 group is under pressure to find a way to hurt Russia without spiking oil prices. In an attempt to do that, US Treasury Secretary Janet Yellen is pushing a plan to cap Russian oil prices to preserve export volumes while hitting the government’s revenues. As a result, aggregate crude flows from Russian ports were down week-on-week by 555,000 barrels a day, or 15%, with shipments lower from all four of the country’s exporting regions.
The Ministry of Finance proposed to oblige employees of Russian companies living abroad to pay taxes in Russia. Officials have found a new way to bring IT and other remote professionals back to Russia, or at least part of their income. The Ministry of Finance proposed to completely revise the approach to taxing the salaries of employees of Russian companies who have moved abroad. Now they do not have to pay personal income tax from their salaries in Russia at all - and if the Duma accepts the bill proposed by the Ministry of Finance, they will be forced to pay 30% tax as non-residents. What happened The Ministry of Finance has prepared a bill with various tax innovations, most of which will not directly affect citizens - except for one, which the Ministry of Finance formulates as follows: “Remunerations paid by domestic employer organizations to remote workers located outside the country are classified as income from Russian sources.” This proposal, if adopted, will completely change the approach to taxing the salaries of employees of Russian companies living abroad and working remotely. Now the law allows them not to pay income tax at all - and
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