Russia VAT rise to 20% Jan 2019
The Russian government has approved a VAT rise from 18% to 20% on 1 January 2019. It must next be ratified by the Russian Parliament – which is likely to be a mere formality.
The hike is less than the Russian 22% VAT threatened earlier. There will be no change to the reduced VAT rate of 10% on basic foodstuffs, medicines, child’s clothing and newspapers & journals.
In addition, the pension age will rise for men and women. The VAT and pensions measures are being introduced to help meet the state deficit despite a recovery in oil prices from $40 to $70 per barrel.
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