PRESS: Russian government mulls raising VAT to 20% from 18%
MOSCOW, May 28 (PRIME) -- The Russian government lacks 8 trillion rubles to fulfill a presidential decree on the countryТs development, and about 2 trillion rubles of this sum can be received by increasing value-added tax (VAT) to 20% from 18%, business daily Vedomosti reported on Monday, citing three federal government officials.
An earlier announced retirement age increase can yield 2 trillion rubles for the budget, OFZ government bond placement 3 trillion rubles and an oil tax reform 1 trillion rubles.
The officials said that some of the decisions can be revised.
Two of the officials said that returning to a 20% VAT after a period since 2004 of an 18% VAT is seen as a less sensitive measure than raising the personal income tax or introduction of the sales tax. Nevertheless, this measure withdraws resources from the economy, one of the officials said.
(61.6659 rubles Ц U.S. $1)