Gov’t has no plans to cut VAT to 13% by 2008
Gov’t has no plans to cut VAT to 13% by 2008
There are no plans to cut the value-added tax from 18% to 13% by 2008, although this issue remains on the Russian government’s agenda, a government source said Wednesday.
He said Prime Minister Mikhail Fradkov had ordered the relevant ministries to consider reducing VAT to 13% by 2007 as a measure to boost economic growth, but no agreement had been reached on the issue.
The source said the issue was included in the middle-term program of Russia’s socio-economic development for 2006-2008, which the government will discuss Thursday, but the document contains no specific figures or terms.
According to the source, the tax would not be reduced by 13% before 2008, as it would cause significant budget losses.
He also said reducing the VAT to 15% or 16% by 2008 could be discussed in conjunction with administrative tax measures.
More: en.rian.ru