The estimated losses of the Russians from raising VAT

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Photo: Maxim Zmeyev / Reuters

Experts of the Institute of contemporary economy has estimated economic effect of the increase in value added tax (VAT) from 18 percent to 20 percent. According to their estimates, on average, every Russian will lose about 4220 rubles a year. This is stated in the Institute’s study, which is at the disposal “of the Tape.ru”.

The report addressed two aspects: the first evaluates the impact of innovation on business, the second — on the Russians. According to the Institute, the profits on average will fall by 5.8 percent per year, and the purchasing power of Russians will fall by two per cent — approximately 4220 rubles a year, the Russians will give the state the tax raise.

“The VAT increase to increase revenues — the measure is very primitive and it is not just useless, but dangerous. What is promised Siluanov 620 billion will be collected — no doubt. VAT has almost one hundred percent collection rates. But the money will be withdrawn from the economy”, — says Director of the Institute of contemporary Economics Nikita Isaev.

The lead author of the expert group and the first Deputy Director of the Institute Ivan Antropov is convinced that it is not obvious where the money is from the growth of VAT will be sent. He recalled that initially the funds promised to send the seniors but later first Deputy Prime Minister and Minister of Finance Anton Silanov said that the money will go toward “education, health, culture.”

“But you can tell that the impact of this measure on the economy and the financial health of businesses and households considered by the government was not. Free, there is neither any conclusive expert opinions, or, even more, public discussion. The bill was not even presented to the public,” insists Antropov.

The authors conclude that the VAT rise could cause the Russian economy real damage and delay the implementation of the may decrees, according to which Russia should enter the top five largest economies in the world.

Previously, the need to “tighten their belts” Russians warned of economic development. The Ministry has revised its macroeconomic forecasts to the downside.

Video, photo All from Russia.

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