FOM: more than half of Russians fear the impact of the growth of VAT on their well-being
More than half (57%) of Russians believe that the VAT increase will negatively affect their well-being, the sociologists of Fund “Public opinion” (FOM). According to the carried out their survey, 21% of respondents fear an increase in VAT. Another 4% of citizens believe that the tax increase will have a positive impact.
Speaking about the impact of rising VAT, 16% of the respondents stated that this measure will help to replenish the budget. 2% of the citizens are waiting for the development of the economy, 1% of respondents expect to increase salaries and pensions, but also hope that the money will be used to address important problems. Another 29% of respondents think that positive effects from the increase in VAT will not.
In addition, 16% of respondents believe that the VAT rise will lead to increased prices and other taxes. 12% of respondents expect lower standard of living. 3% predict a decrease in the purchasing power of the population, the growth of shadow business, as well as negative consequences for small and medium businesses. 2% are afraid of rising theft and corruption. 1% believes that raising the VAT is —”robbery of the people.
The survey was conducted on June 24 at 104 localities, 53 regions of Russia. It was attended by 1,500 Russians aged 18 years and older.
About the VAT increase, the government announced on June 14 and 16, the document was submitted to the Duma. It will consider the first reading on 3 July. Treasury estimates that the VAT rise will give the Treasury additional 620 billion rubles per year from 2019.