Just last year, Vladimir Putin promised that Russia’s basic tax framework would remain unchanged until at least 2030. Now, however, the country’s Finance Ministry is moving to raise the standard VAT from 20 to 22 percent — the second tax hike since the start of the full-scale war against Ukraine. Officials openly admit the change is meant to keep the war chest full, but on state TV the story was barely there: Channel One, Rossiya 1, and NTV each tucked it into the tail end of their news shows, after segments on the “,” Donald Trump’s U.N. speech, and the upcoming elections in Moldova. Meduza summarizes how state television packaged the news.

Channel One

Russia’s Finance Ministry has submitted a three-year budget package to the government. It allocates more funds for subsidized mortgages, road repairs, and the agricultural sector. The main priorities are funding social programs, strengthening defense, supporting participants in the “,” funding maternity capital programs, and achieving technological leadership. Schools and kindergartens will be renovated. Among other measures, the proposal calls for raising the VAT rate by two percent, though this will not apply to essential goods such as food, medicines, medical supplies, and children’s products. The plan also introduces steps to crack down on shell companies.

Rossiya 1

Putin has appointed Alexander Gutsan as prosecutor general and Igor Krasnov as head of the Supreme Court. The Federation Council approved both appointments unanimously. By the way, the council also discussed the draft budget. It will be strongly oriented toward social programs, with its chief priority being the goals outlined by the president. The armed forces will receive full funding. Part of the revenue will come from tax changes: the proposal raises the VAT rate to 22 percent, though the reduced rate for essential goods will remain unchanged. Meanwhile, the State Duma passed a law prohibiting online services from using bank card details that a user has deleted.

NTV

Minister Maxim Reshetnikov presented a three-year financial forecast to the Federation Council. The budget is based on this forecast, and the Finance Ministry describes it as balanced and sustainable. Significant funds will go to families with children, subsidized mortgages, the replacement of unsafe housing, and the implementation of national projects. A major part of the budget involves tax reforms aimed at strengthening defense and security. The proposal raises the VAT rate from 20 to 22 percent, while the reduced rate for essential goods will remain in place. Meanwhile, with the sudden onset of autumn temperatures, Russia is seeing a rise in acute respiratory infections.

Our only hope is you. Support Meduza before it’s too late.The Kremlin is raising taxes to fund the war against Ukraine. Here’s what you need to know.