1. Russia's Finance Ministry has proposed increasing Value-Added Tax (VAT) from 20% to 22%.
- This proposal comes in response to the prolonged military offensive in Ukraine.
2. The preferential rate of 10% on items like food, medicine, children's goods, and some others will remain unchanged.
- This is reportedly to protect people's livelihoods.
3. If approved by the parliament, the VAT increase will take effect in January 2026. The additional revenues are intended for national defense and security, specifically military spending related to the offensive against Ukraine.
- This proposal comes in response to the prolonged military offensive in Ukraine.
2. The preferential rate of 10% on items like food, medicine, children's goods, and some others will remain unchanged.
- This is reportedly to protect people's livelihoods.
3. If approved by the parliament, the VAT increase will take effect in January 2026. The additional revenues are intended for national defense and security, specifically military spending related to the offensive against Ukraine.
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Summary
Russia's Finance Ministry proposes a VAT increase from 20% to 22%, effective in 2026, due to the ongoing military offensive in Ukraine. This increase excludes essential items like food, medicine, children's goods with the preferential rate of 10% remaining unchanged, intended to protect people's