PRESS: Russia may cancel VAT discount for some goods - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

PRESS: Russia may cancel VAT discount for some goods

MOSCOW, Apr 18 (PRIME) -- Russian Prime Minister Dmitry Medvedev on Tuesday ordered the government to calculate the consequences of cancelling value-added tax (VAT) discounts on all types of goods for the budget and consumers, Vedomosti business daily reported on Wednesday quoting government officials.

The government is discussing cancellation of the VAT discount to increase targeted social support under President Vladimir PutinТs latest address to the Federal Assembly, both parliament chambers. The Tuesday meeting of the government discussed inefficiency of the VAT discounts, Vedomosti reported.

The baseline VAT rate for all goods stands at 18%, but the government collects VAT of 10% from food excluding delicacy foods, from children goods, books, school books, and medicines. The official calculated the cost of the VAT discounts stands at 550 billion rubles in 2017, or about 0.6% of the countryТs gross domestic product, the business daily said.

This cost will rise to 600 billion rubles in 2018 and to almost 650 billion rubles in 2019, Vedomosti reported quoting the official.

In 2016, the Finance Ministry suggested boosting the discount to 12% in 2017 and increasing the rate by 2 percentage points per year starting from 2019 until it equals the baseline 18% rate. The ministry also suggested allocation of 1,500 rubles per month to the poorest people to compensate the increase.

The official told Vedomosti that the discount may stay only for medicines and food, and the government may simultaneously introduce targeted subsidies.

(61.1454 rubles ЦU.S. $1)

End

18.04.2018 09:57
 
 
Share |
To report an error select text and press Ctrl+Enter
 
 
Central Bank Official Rate
1W 1M 1Y
USD
EUR 78.3613 -0.8136 20 sep
USD 67.0098 -0.7421 20 sep
Stock Market Indices
1D 1W 1M 1Y
MICEX
rtsi 1134.10 +0.99 18:50 19 sep
micex 2404.42 +0.08 18:50 19 sep
Stock Quotes in RUR
1D 1W 1M 1Y
GAZP
gazp 157.39 +0.20 18:49 19 sep
lkoh 4719.00 +0.73 18:49 19 sep
rosn 437.85 -0.58 18:49 19 sep
sber 193.90 +1.17 18:49 19 sep
MICEX Ruble Trading
1D 1W 1M 1Y
USDTD
EURTD 79.1900 -0.2175 14:59 19 sep
USDTD 66.7525 -0.6175 17:44 19 sep