Russian Businesses Raise Prices Due to VAT Increase to 22%
Russian businesses have raised prices in response to a VAT increase from 20% to 22%, which took effect on January 1. Logistics rates surged by 10% to 20%, while other sectors, including food service and healthcare, saw hikes of 8% to 10%. The Finance Ministry anticipates an additional 3.2 trillion rubles in revenue from the VAT change, aimed at bolstering defense spending amid projected inflation of 4% to 5% by year-end.
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Russian businesses increased prices following a VAT hike from 20% to 22% effective January 1, impacting small business VAT obligations. Logistics companies raised rates by 10% to 20%. Food service, fitness, healthcare, and education saw price hikes of 8% to 10%, while IT services increased by 5% to 7%.
Businesses had anticipated these changes, adjusting prices in late 2025. Prices reportedly rose 1.26% from January 1 to January 12, with inflation expected to reach 4% to 5% by year-end. The Finance Ministry predicts an additional 3.2 trillion rubles in revenue from the VAT changes to support defense spending.
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