Russia increases VAT, explains the reasons for it
(MENAFN) On Monday, Anton Siluanov, the Finance Minister of Russia, stated in an interview with a Russian news agency that Russia will increase value added tax (VAT) by 2% in order to reduce the budget deficit as well as curb inflation.
The Finance Ministry formally introduced its budget proposal for 2026-2028 to Russia's parliament earlier in the day.
Siluanov stated that “a balanced budget will be an important factor in economic growth, as it is the basis for slowing inflation, macroeconomic stability, and the possibility of easing monetary policy.”
He said “Increasing the standard VAT rate from 20 to 22% as an additional measure was chosen based on its less negative impact on the economy compared to alternative measures,” he also added that vital goods like food, as well as medicine will stay taxed at a flat 10% to protect families with low-income.
He clarified that the tax increase was preferred over incurring public debt because officials viewed borrowing as a great risk, likely leading to more inflation and a resulting interest rate hike.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
