Russia Plans Tax Increase to Ease War-Related Strains on Budget

Russia plans to raise its consumption tax and broaden the base of companies required to pay it to help plug a widening fiscal gap as the war on Ukraine continues to weigh on the budget.

The value-added tax rate will rise to 22% from 20% starting next year, the Finance Ministry said in a statement on Wednesday. The ministry also said it would apply to a broader base.

Currently, companies with an annual revenue of more than 60 million rubles ($716,400) pay VAT to the government, though in practice they often pass the levy onto consumers in the form of ...