PRESS: Russian ministry mulls VAT raise to 21% to earn 836 bln rbl

MOSCOW, Feb 21 (PRIME) -- The Economic Development Ministry is considering raising value-added tax (VAT) to 21%, which is expected to earn 836 billion rubles for the federal budget additionally, or 0.91% of gross domestic product (GDP), business daily Kommersant reported Tuesday citing a presentation of the ministry.

The move can be made under a 21/21 tax change concept which envisages raising VAT to 21% in 2018 or 2019 from the current 18% and reducing total payments to social funds to 21% from 30%.

The change is expected to reduce the tax burden on state sectors of employment: healthcare, education and state administration, and also agriculture, first of all.

The concept is only one of the discussed tax change ideas, sources in the government told Kommersant.

(58.0967 rubles – U.S. $1)

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