Russia Proposes VAT Hike Amid Defense Funding Needs
The Russian finance ministry plans to increase the VAT rate to 22% from 20% by 2026 to balance the budget and support military expenses. Additional tax increases, including those on gambling, are also proposed to finance defense and security. The draft budget is deemed sustainable.
- Country:
- Russia
The Russian finance ministry announced a proposed increase in the value-added tax (VAT) from 20% to 22%, effective from 2026. This measure aims to balance the state's budget and cover military expenditures.
In a recent statement, the ministry also mentioned plans to raise taxes on gambling businesses, among other sectors.
The tax revisions are directed at ensuring defense and security funding, with the ministry asserting that the 2026 budget draft will remain balanced and sustainable under these new measures.
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