Russia Proposes VAT Hike to Fund Ukraine War

25 Mwezi wa tisa, 2025 Imeripotiwa na AI

Russia's finance ministry has proposed increasing the value-added tax from 20% to 25% starting next year, aiming to generate additional revenue to sustain military operations in Ukraine. The move comes amid escalating costs of the ongoing conflict, now in its fourth year, and reflects the Kremlin's efforts to bolster state finances without directly taxing citizens more heavily. If approved, this tax adjustment could raise billions in revenue but may exacerbate inflation and economic strain on Russian households.