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Russia Sets 22% VAT From January 2026 as Finance Minister Plays Down Inflation Impact

Finance Minister Anton Siluanov says tight monetary policy will cap the impact at under one percentage point of inflation.

Overview

  • The standard VAT will rise from 20% to 22% on January 1, 2026, with a 10% rate retained for socially important goods.
  • Siluanov told RBC the change is expected to add less than one percentage point to inflation.
  • He said the government opted for higher taxes instead of increased borrowing to avoid extra pressure on prices and interest rates.
  • The ministry reports no early price pass-through so far, contrasting with the 2018–2019 increase that fed into prices in December.
  • Siluanov made the comments at VTB’s Russia Calling forum on December 2 and in an interview published December 3.