The Russian Ministry of Finance has proposed raising the value-added tax (VAT) rate from 20% to 22%, starting January 1, 2026.
Source: Pryamyi
The Finance Ministry’s press release states that the additional revenue from the increased VAT will be primarily directed toward funding the country’s defense and security.
Previously, the government planned to submit the 2026 budget draft to parliament on September 29. The main parameters have already been approved by the president, so minimal amendments are expected during consideration in the State Duma.
Even with increased personal and corporate income taxes, Moscow has already tripled its federal budget deficit forecast—to 1.7% of GDP in 2025. Anonymous government sources indicate that the actual deficit may be even higher, putting the 2026 plan (0.9% of GDP) at risk.
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