US EditionRussia Proposes VAT Hike to Fund Military in Ukraine Conflict
The VAT hike aims to raise about 1.3 trillion rubles ($15.5 billion) annually to fund defense amid ongoing war-related budget pressures, officials said.
- Russia's Finance Ministry plans to increase the value-added tax from 20% to 22% starting January 1, 2026, to fund defense and security spending.
- The increase aims to generate approximately 1.3 trillion rubles annually, as reported by the Kommersant business newspaper.
- The proposal includes a reduction in the VAT threshold for small businesses from 60 million rubles to 10 million rubles to simplify tax payments.
- President Vladimir Putin has previously assured that there would be no tax increases before 2030, contradicting the new proposal.
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The Russian government held its last preparatory meeting on Wednesday 25 September before the official presentation of the budget next Monday. This text aims to manage the landing of an economy by overheating in previous years and to continue a sustained effort to finance the conflict in Ukraine. With, at the key, an increase in VAT.
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The Russian Ministry of Finance proposed Wednesday to increase VAT to finance its exponential military expenditures, after more than three and a half years of offensive in Ukraine. ...
Putin forced to raise taxes again as Ukraine war drains finances
After three and a half years, President Vladimir Putin is having to lean more and more on ordinary Russians to pay for his war in Ukraine. The Russian Finance Ministry on Wednesday said it intends to raise value added tax by two percentage points to 22 percent, part of a three-year plan that aims to plug a rapidly expanding hole in public finances. VAT accounted for more than 15 percent of total government revenue last year. After raising person…
The tax burden will be increased to finance the war in Ukraine.
Russia wants to raise VAT in the country to finance its war of aggression against Ukraine.
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