The Russian State Duma approved an increase in VAT to 22% from 2026.

According to the Ministry of Finance's estimates, this change will generate additional federal budget revenues of 1.187 trillion rubles in 2026, 1.559 trillion rubles in 2027, and 1.677 trillion rubles in 2028, for a total of 4.423 trillion rubles over three years. These funds will be used to finance defense and security needs. The Central Bank plans to closely monitor the short-term impact of the VAT increase, which could affect inflation. Experts believe that in the long term, the VAT increase will help reduce the budget deficit and enhance the stability of the budget system.