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Russia Approves Tax Hikes Amid Economic Struggles

11/19/2025

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Summary

Story summary

Russian lawmakers approved tax hikes, including raising value-added tax from 20% to 22%, potentially adding 1 trillion rubles ($12.3 billion) to the budget.
The VAT threshold drops from 60 million to 10 million rubles by 2028, affecting many small businesses.
Additional tax increases on alcohol, cigarettes, and technology items are proposed.
Economy growth is projected at 1% this year, with rising inflation and a 2.6% budget deficit.

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Story summary

Russian lawmakers approved tax hikes, including raising value-added tax from 20% to 22%, potentially adding 1 trillion rubles ($12.3 billion) to the budget.
The VAT threshold drops from 60 million to 10 million rubles by 2028, affecting many small businesses.
Additional tax increases on alcohol, cigarettes, and technology items are proposed.
Economy growth is projected at 1% this year, with rising inflation and a 2.6% budget deficit.