Russia plans to raise VAT to 22%: how this will affect the budget and the economy

The Russian authorities are considering the possibility of increasing the VAT rate from 20% to 22%, although it was previously promised not to raise the tax burden.In the context of a prolonged war, Russia's budget deficit is rapidly growing. In the first eight months of 2025, it reached 4.19 trillion rubles, almost four times more than planned.According to the Ukrainian Foreign Intelligence Service, VAT is the main source of federal revenue, and raising this tax is an attempt by the government to reduce the budget deficit. The government has already raised other taxes, but their effect is limited, so it is now planned to revert to VAT. The steps taken are criticized as deepening the systemic crisis rather than reform.