Bank of Russia: VAT Increase to Affect Two-Thirds of Consumer Goods
17 July 2018 (09:17)
UrBC, Moscow, July 17, 2018. The 2% increase in the value-added tax (from 18% up to 20%) is going to affect 70% of consumer goods prices, the Bank of Russia’s Research & Forecast Department’s data analysis findings indicate.
It is therefore believed that consumer prices will rise 0.8% to 1.25% once the VAT increase comes into effect. The overall inflation rate is expected to speed up over 4% as a result.
The State Duma is currently considering rising the VAT to 20%. Under the terms of the draft bill under processing, the increase should come into force on January 1, 2019. The bill has passed the first reading already.
It is therefore believed that consumer prices will rise 0.8% to 1.25% once the VAT increase comes into effect. The overall inflation rate is expected to speed up over 4% as a result.
The State Duma is currently considering rising the VAT to 20%. Under the terms of the draft bill under processing, the increase should come into force on January 1, 2019. The bill has passed the first reading already.
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