The Russian finance ministry said on Wednesday it was proposing to raise the rate of value-added tax (VAT) to 22% from 20% from 2026 in order to fund military expenditure in what would be the fourth year of the war in Ukraine.

Russian President Vladimir Putin signalled last week that he was open to raising certain taxes to make financial ends meet during the war, noting that the United States had raised taxes on wealthy people during the Vietnam and Korean wars.

The finance ministry, which said the tax hikes would be "aimed primarily at financing defence and security," said in a statement that it was also proposing other tax increases, including on gambling businesses.

"The strategic priority is to provide financial support for the country's defence and security needs and social suppo

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