Published on, Sept. 24 -- September 24, 2025 10:18 PM

Russia's finance ministry has proposed raising the value-added tax (VAT) from 20% to 22% starting in 2026 to support growing military expenses during the fifth year of the Ukraine war. This proposal signals the government's determination to secure additional revenue despite earlier pledges by President Vladimir Putin to avoid significant tax changes before 2030. Analysts estimate the tax increase could generate roughly 1 trillion roubles ($11.9 billion) in extra revenue for the federal budget.

The ministry confirmed that the higher VAT, along with other proposed tax measures including gambling taxes, would be directed primarily toward funding defence and security. Officials emphasize...