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Russia to raise value added tax rate to 22% as war weighs on economy

Finance ministry says funds will be mainly used to cover the country’s spiralling defence and security spending

Russia’s government has announced plans to raise the rate of value added tax from 20 to 22 per cent, backtracking on President Vladimir Putin’s promises as the war against Ukraine drags on the economy.

The step goes against Putin’s pledge last year not to raise taxes again before 2030, but the finance ministry justified it by saying the funds would primarily be used to cover Russia’s spiralling defence and security expendit