Russia: Government to raise the VAT to 20% from 18% — D.Medvedev

APK-Inform

The Government of the Russian Federation proposed to increase the value-added tax (VAT) to 20%, from its current level of 18%, declared the Prime Minister of Russia, Dmitry Medvedev on June 14.

“We’ve made the following decisions that are proposed for consideration. The first one — the VAT rate will be changed. At present, the basic rate of VAT is 18%. We propose to raise it to 20%,” he said. D.Medvedev stressed that all existing incentives on VAT on main services and socially important goods will remain unchanged.

“In order the burden does not fall on people, all incentives on VAT, on main socially important goods, main services will be kept. These are reduced rates on food products, children goods, pharmaceutical goods and zero rates on domestic interregional air transportation,” he said.