Overview

• The rate would rise on Jan. 1, 2026, with proceeds directed primarily to defense and security, according to the Finance Ministry.
• Food, medicines and children’s goods would retain the reduced 10% VAT.
• The draft adds a 5% levy on accepted bets and a 25% profit tax for bookmakers while cutting the simplified-tax threshold for small firms to 10 million rubles from 60 million.
• Kommersant reported a Finance Ministry estimate that the VAT increase could raise about 1.3 trillion rubles per year.
• The package moves from cabinet review to the State Duma with Kremlin backing as officials confront a 4.88 trillion-ruble Jan–July deficit and inflation risks highlighted by the central bank after the 2019 VAT hike.