Overview

• The draft raises the standard VAT from 20% to 22% starting January 1, 2026, as part of the 2026–2028 federal budget package.
• The 10% reduced VAT would remain for socially significant goods including food, medicines, medical products and children’s items.
• The submission also seeks to tighten taxation of bookmakers, cancel pandemic-era payroll contribution breaks and narrow eligibility for simplified regimes to boost receipts.
• The Finance Ministry estimates the VAT change would generate more than 1 trillion rubles in extra annual revenue directed chiefly to defense and security.
• Officials describe expected price effects as moderate, and the package still requires government consideration followed by State Duma approval.