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Russia proposes raising VAT to 22% in 2026 to fund Ukraine war efforts and reduce deficit.
Russia’s finance ministry has proposed raising the VAT from 20% to 22% in 2026 to help fund military operations in Ukraine, generate 1.3 trillion rubles annually, and address a growing budget deficit.
The move, part of a broader fiscal plan, aims to support defense, military personnel, and families of service members, while maintaining a reduced 10% rate on essential goods.
The budget also includes lowering the VAT threshold for small businesses to combat tax evasion.
The proposal follows declining economic growth and previous tax increases, with the plan awaiting government and State Duma review.
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Rusia propone elevar el IVA al 22% en 2026 para financiar los esfuerzos bélicos de Ucrania y reducir el déficit.