The Effect of Inflationary Taxation in Russia

Aim. Explore the role of inflation and inflationary taxation in the Russian Federation.

Methodology. The dynamics of inflation in Russia for 2010-2022 are considered; the share of the VAT and excises in tax revenues of the federal budget of the Russian Federation for 2016-2021; dynamics of actual and forecast receipts of the VAT and excises in the budgetary system of the Russian Federation. As a result of the study, it was revealed that in different years 2010-2021 there is an increase in inflation to a maximum level, such as in 2015, then a decrease to a minimum level in 2017, but inflation reached a critical level in March-April 2022. The article uses the comparative method, the method of arithmetic differences, elements of predictive and statistical analysis.

Results. Over the past few years in Russia, the greatest effect of inflationary taxation was observed in 2020-2021, and especially at the beginning of 2022. These periods are associated with the COVID-19 pandemic in 2020-2021, as well as with the sanctions imposed by the West in connection with the outbreak of the war in Ukraine and the oil embargo as a result of the EU sanctions in 2022. As a result of these sanctions, the risk of rising prices is projected to increase if the fall in commodity exports is significant.

Research implications. The scientific works of famous scientists-economists in the field of inflation and taxation, such as Gagarina G.Yu., Glazyev S.Yu., Lapshin V.Yu., Senchagov V.K, are studied. It is proved that inflation is a forced increase in the level of prices for goods and services over a certain period of time. For the population, inflation consists in a regular increase in retail prices, which causes a decrease in their purchasing power. Besides, a high level of inflation hinders long-term investments in the Russian economy, slows down the pace of economic development, devalues the national currency, destroying the monetary system.

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