There will be more free products for the poor in Russia

Izvestia: Russia has proposed to abolish VAT on products for charity

In Russia, there may be more free products for the poor. The Ministry of Finance, together with specialists from the Federal Tax Service (FTS), are working on the issue of exemption of manufacturers from VAT on expiring goods that are donated to charity. Izvestia writes about this with reference to the response of the ministry to the corresponding initiative of the Food Sharing organization.

The organization proposed to amend Article 170 of the Tax Code of Russia and remove from companies the obligation to restore VAT if such goods are transferred free of charge the poor. Today, by participating in charity, companies are forced to pay up to 20 percent tax on the value of products).

According to the authors of the initiative, participation in charity is more expensive for retailers than sending food to landfills. As a result, tons of food end up in landfills every year. If VAT is canceled on products sent to charity, then every year it will be possible to save at least one million tons of food per year – this will provide food to help 18 million people in need, according to Food Sharing.

The Ministry of Industry and Trade supports the idea, since the changes will make it possible to provide assistance to a huge number of people without attracting budget funds. The Ministry of Economic Development believes that the measure should be extended not only to food, but also to other essential goods. The abolition of the tax will help those in need, will help reduce the burden on landfills, and will also reduce the financial burden on retailers, experts say.