Russia intends to increase taxes for the population and the business environment as a measure to support military spending.

The Russian Ministry of Finance has presented a budget proposal for 2026, which includes increasing VAT from 20% to 22% and reducing the exemption threshold for small businesses. Additionally, a 5% tax on gambling is proposed. These measures are justified as an alternative to increasing borrowing, in the context of a budget deficit estimated at 1.6% of GDP. Although defense spending will slightly decrease, funds for internal security will increase, maintaining a high level of spending for war. Analysts warn that these taxes will affect the population, already impacted by inflation and high interest rates, and the economy is forecasted to stagnate.