The State Duma approved the increase of VAT from 20% to 22% and the reduction of the VAT collection threshold, affecting small businesses.

Members of the State Duma of Russia have approved a bill that will increase the value-added tax (VAT) from 20% to 22%, estimating that this change will add up to 1 trillion rubles (approximately 12.3 billion dollars) to the state budget. Additionally, the new legislation will lower the threshold for businesses required to collect VAT from 60 million rubles (approximately 739,000 dollars) to 10 million rubles (approximately 123,000 dollars), affecting many small businesses that were previously exempt. These measures are part of a series of new taxes aimed at supporting the Russian economy, which is facing a slowdown. Among the additional proposals are increases in excise taxes on alcoholic beverages and technological products.

The Russian economy contracted at the beginning of 2025 and is estimated to grow by only 1% for the current year, in the context of high interest rates and inflation. The budget proposal for 2026 has also been approved, setting military spending at 12.93 trillion rubles (159 billion dollars). These measures must be approved again by the lower house and then by the upper house before being signed by President Vladimir Putin.