Russia plans tax increase to finance war on Ukraine

Russia plans to rise value-added taxation (VAT) to assistance concern its warfare connected Ukraine, the Finance Ministry said connected Wednesday.

Under the draught 2026 fund proposal, the VAT complaint would summation to 22 per cent from the existent 20 per cent.

The authorities said it would proceed to conscionable each societal argumentation commitments, but listed defence, information and enactment for soldiers and their families arsenic “strategic priorities.”

Military and information spending already accounts for astir 40 per cent of full authorities expenditure successful the 2025 budget, according to authorities estimates.

Large authorities orders for the defence manufacture and hefty payments to soldiers and their families person fuelled a play of maturation for Russia’s warfare economy.

But signs of strain are emerging successful civilian sectors, and ostentation is squeezing household budgets.

The Finance Ministry said a little 10 per cent VAT complaint connected food, medicines and children’s goods would stay unchanged.

Russia, nether the orders of President Vladimir Putin, has been waging a full-scale warfare connected neighbouring Ukraine for much than 3 and a fractional years, with nary extremity to the struggle successful sight.

The fund connection inactive requires support by parliament, a measurement wide seen arsenic a formality successful Russia.
(dpa/NAN)

The station Russia plans taxation summation to concern warfare connected Ukraine appeared archetypal connected Vanguard News.