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Finance Ministry eyes lower threshold for tax-free online purchases

These suggestions will be formulated and sent for consideration to the Eurasian Economic Council

Finance Minister Anton Siluanov ITAR-TASS/Yuri Belinsky

Finance Minister Anton Siluanov

© ITAR-TASS/Yuri Belinsky

MOSCOW, December 23. /ITAR-TASS/. Russia's Finance Ministry is proposing to lower the level of tax-exempt Internet purchases to €150, Finance Minister Anton Siluanov told journalists on Monday.

“We suggest reducing the tax-exempt purchase level from €1,000 to €150,” he said, adding that these suggestions would be formulated and sent for consideration to the Eurasian Economic Council.

Siluanov said there were no plans to lower the limit for goods imported by air, currently $10,000.

Earlier in December, Russian presidential aide Andrei Belousov told Rossiyskaya Gazeta newspaper that there were no plans to toughen the conditions, but explained that there would be “simple adjustment of rules” for ordinary and online trade.

PricewaterhouseCoopers estimates that Russia’s online trade market has increased from $3.5 billion in 2008 to $10.4 billion in 2012, while Morgan Stanley forecasts that by 2015 Russia’s e-commerce market will grow to $36 billion, making up 4.5% of the total retail sales.

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