MOCOW: After two years of robust growth fuelled by military spending on the war in Ukraine, Russia's economy is slowing. Oil revenues are down, the budget deficit is up and defence spending has levelled off.

The Kremlin needs money to keep its finances steady — and it's clear where President Vladimir Putin intends to get it: at the cash register, from ordinary people and small businesses.

An increase in value-added tax to 22 per cent from 20 per cent is expected to add as much as 1 trillion rubles, or about USD 12.3 billion, to the state budget. The increase is contained in legislation already making its way through Russia's compliant parliament and would take effect from January 1.

More tax and fee increases are on the way

On top of the rate increase, the legislation lowers the thres

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