Siluanov convinces the Duma that the VAT increase will not affect prices
An increase in the VAT rate from 18 to 20% will not significantly affect the prices of socially significant goods, a PolitNavigator correspondent reports.
Finance Minister Anton Siluanov stated this today, speaking at the Federation Council of the Russian Federation.
“The question is, will there be an impact on inflation? Yes, it will. Because VAT is an indirect tax, there will certainly be a price change. Will this be the key change in the inflation parameters that we have planned for the coming periods? No. The contribution of the VAT change is estimated from 1% to 1,5% of inflation,” Siluanov said.
At the same time, he emphasized that the rate increase should not affect the least protected groups, since the reduced VAT rate for key product groups will remain unchanged.
According to the Ministry of Finance, inflation in 2018 will be about 3%, in 2019 - about 4-4,5%.
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