Began the process of raising VAT

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Photo: Vladimir Fedorenko / RIA Novosti

The state Duma adopted in first reading a government bill to raise the VAT rate. From January 1, 2019 it will grow 18 to 20 percent, RIA Novosti reported.

“The decision on VAT is a harmonized solution that provides additional resources to fulfil the tasks set by the President”, — declared the Chairman of the budget Committee Andrey Makarov.

As wrote Forbes, the greatest benefit from the increase in VAT will receive a company working on contract with government agencies. Firms that depend on real demand, revenue will decrease.

According to Russian authorities, the rate increase will play into the hands of Russian exporters and motivates the business to actively deliver products abroad. “Some industries, especially those export-oriented, according to our estimates, will benefit from this increase, because now the tax it is compensated from the Federal budget. For example, the chemical industry”, — said the Minister of industry and trade Denis Manturov.

About the upcoming VAT increase, Prime Minister Dmitry Medvedev announced in mid-June. Then it became known about the gradual increase in the retirement age.

Video, photo All from Russia.

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