The Russian government has disclosed a plan to increase its Value-Added Tax (VAT) to help bolster funding of its war against Ukraine.
Russia stated that the VAT will be increased to 22 percent as against the current 20 in accordance with the 2026 proposed budget draft.
The Finance ministry relayed that the measure, which is subject to an approval by the parliament, will enable an increased dedication in its defence and security in the fight with Ukraine alongside welfare support for soldiers and their families.
However, the east European country on Wednesday stated that the 10 percent VAT rate on food, medicine and children’s goods remain unchanged.
The move spearheaded by President Vladmir Putin has generated reactions, majorly of criticism, owing to the adverse effects it would have on the economy.
”Its horrible,” a sexagenarian respondent in Moscow, Svetlana Vasilenko, said.
”In my opinion, this rate increase is madness. I have many acquaintances who own businesses and even at 20 percent, it is very difficult for them.”
However, one soldier who identified himself as Fyodor said he was ready to tighten his belts if the measure gets implemented.
”If the state has nowhere else to get money, then there is no other option. What even to discuss.”
Oleg, a 33-year-old legal practitioner, uttered that he didn’t mind the proposal but warned that people are unlikely to be in favour of it.
