Russia proposes an increase in its 18% VAT rate
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%.