Kremlin Says VAT Hike Justified With No Timeline for Duration

Officials present the increase as fiscally necessary without specifying how long it will remain in place.

Overview

Presidential spokesman Dmitry Peskov said the decision to raise value-added tax was necessary and supported by Finance Ministry assessments and forecasts.
Peskov told reporters there is currently no understanding of the timeframe for how long the higher rate will apply.
President Vladimir Putin previously signed the law lifting VAT from 20% to 22% starting January 1, 2026.
The legislation preserves a 10% reduced rate for socially significant goods such as food, medicines, children's goods, periodicals, books, and pedigree farm animals.
Putin has expressed hope the increase will prove temporary, though no sunset or end date has been outlined.