Overview

• The Finance Ministry formally set out a plan to lift VAT from 20% to 22% starting Jan 1, 2026.
• The ministry said the revenue is aimed primarily at defence and security, including equipment purchases, military pay, family support, and defence-industry upgrades.
• Additional tax measures were proposed, including higher levies on gambling businesses.
• President Vladimir Putin recently signalled openness to tax increases, citing U.S. wartime precedents.
• The ministry called the draft 2026 budget balanced and sustainable, with Russian reports indicating submission to parliament on Sept 29.