Russian lawmakers endorsed new tax hikes on Tuesday as Moscow looks for new revenue sources to boost its economy during its nearly four-year war with Ukraine .

Legislators in the lower house of parliament, the State Duma, approved the key second reading of a bill that will raise value-added tax from 20% to 22%. The changes are expected to add as much as 1 trillion rubles (about $12.3 billion) to the state budget.

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The new legislation also lowers the threshold for businesses required to collect VAT from 60 million rubles (about $739,000) in annual sales revenue to 10 million rubles (about $123,000). The changes, which will be introduced in stages up to 2028, are designed to stop firms from dividing their operations to avoid taxes. But they are also expected to hit man

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