Russia prepares to raise VAT to 22%: who will pay for the budget deficit.

Consideration of raising the VAT rate in Russia

According to inkorr.com: The Russian administration is considering raising the value-added tax (VAT) rate from 20% to 22%. This decision has been made despite previous promises not to increase the tax burden.

The prolonged war has led to a sharp increase in the budget deficit of the Russian Federation. In the first eight months of 2025, the deficit reached 4.19 trillion rubles, which is nearly four times the planned figures.

According to information from the Ukrainian Foreign Intelligence Service, VAT is the main source of revenue for the state budget, and raising this tax is an attempt by the government to reduce the budget deficit. Although the government has already raised other taxes, their impact has been limited, so there are plans to return to the issue of VAT again. These actions have drawn criticism, as they are considered to deepen the systemic crisis rather than reform.

If the decision is made, it could significantly impact the country’s economy, as increasing VAT traditionally leads to rising prices for goods and services. Given the context of war and economic crisis, each new tax has serious consequences, and an increased focus from experts and analysts on this issue can be expected soon.