The state Duma adopted the law on the VAT increase The state Duma adopted in the third final reading the law on increase from 2019 the rate of value added tax (VAT) from 18% to 20%. A government initiative, as well as raising the retirement age, was supported only by fraction “United Russia”. KPRF, LDPR and “Fair Russia” has opposed. The Ministry of Finance expects that this measure will provide the Federal budget for more 633,5 bn in 2019, 2020 and 2021 — 678 728 bln and bln, respectively. The extra money the government needed for the execution of the new of the may decree of President Vladimir Putin — increased funding of infrastructure, demographic policies, healthcare and education. The VAT rise will drive inflation, but will keep it in 2019 in the range of 4-4,5%, was acknowledged by the Finance Ministry.NewsThat will change when the VAT increase from 18%
