Russia proposes an increase in its 18% VAT rate

Wed 22nd Feb 2012

The Russian Federation has put forward a standard Russian Value Added Tax  rate increase of up to 4%, taking the current rate from 18% to 22%.

The rise is part of a range of measures which aim to tackle faltering government revenues, and an over dependence on oil duties.  The Russian state spend is heavily burdened with defence and civil protection bills.  A range of Russian VAT increases – 2% to 4% – are being reviewed.

In addition, it has been suggested that the employment tax and insurance contribution bill be returned to 34%.

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