The government submitted to the Duma a bill to raise VAT to 20%
Moscow. June 16. INTERFAX.RU Prime Minister Dmitry Medvedev signed a decree on introducing to the state Duma draft laws on amendments in the legislation on taxes and duties, said on Saturday the press service of the Russian government.
“The draft law envisages the increase of the basic VAT rate from 18% to 20%; a reduction in the overall rate of insurance contributions to state non-budget funds with 34 to 30%; the retention of the right to deduction of VAT amounts paid when acquiring the goods, works and services through subsidies or public investment, for organizations in the automotive industry for the period until January 1, 2019”, — stated in the message.
It is also proposed to amend the Federal laws “On mandatory pension insurance in the Russian Federation” and “About bases of obligatory social insurance”, setting the rate of insurance contributions to the Pension Fund at the rate of 22%.
To increase the basic VAT rate from the current 18% to 20% suggested Dmitry Medvedev at the government meeting on June 14. However, he noted that all of the VAT exemption for major socially significant goods and services will be maintained. It is expected that the new VAT rate will apply from 1 January 2019.