State Duma approves VAT raise to 20% in first reading

MOSCOW, Jul 3 (PRIME) -- The State Duma, Russian parliament’s lower chamber, approved a draft law raising value-added tax (VAT) to 20% from 18% in the first out of three required readings on Tuesday.

The tax increase is expected to raise 620 billion rubles annually for the federal budget, starting from 2019. All tax incentives will stand.

Andrei Makarov, head of the budget and taxes committee said at the end of June that the Duma would pass the whole set of bills changing the taxation system until the end of July.

Deputy Finance Minister Ilya Trunin said that the VAT raise will not influence gasoline prices significantly.

(63.1394 rubles – U.S. $1)

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