Increased value-added tax in Russia to 22%

Russia began the new year with an increase in the value-added tax, increasing its rate from 20% to 22% to contribute to financing the Ukraine war, which increases existing pressures on household budgets. The increase is expected to provide an additional 1.187 trillion rubles ($15 billion) to the Russian state treasury during the year 2026. The increase, which was ratified last year, faced criticism from companies and consumers who are already suffering from high rates of inflation and prices due to Western sanctions and increased defense spending, and the president said. Russian Vladimir Putin said last December that increasing the value-added tax was necessary to achieve balance in the country’s budget.