By Nika Khutsieva and Darya Korsunskaya

MOSCOW (Reuters) -Russia’s new wave of tax hikes, designed to mobilise state finances as the war in Ukraine grinds on, is set to hit one in 10 small business owners, many of whom say they will have no choice but to shut down or move into the shadow economy.

Russia has been gradually raising domestic taxes since 2023, the second year of the war, including personal income and corporate profit taxes, to keep up with military spending, now at its highest level since the Cold War.

The new tax regime, including a measure to cut the annual revenue threshold for VAT tax breaks for small businesses to 10 million roubles ($123,000) from 60 million roubles, is set to take effect in 2026, pending approval by parliament.

“This is a shock for all small busines

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