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RUSSIA'S ECONOMY

Tax free shopping system may be launched across Russia starting October

Authorities hope that after March, April and May they will gather information that will allow to have tax free shopping system operating in all cities that host the World Cup

GORKI, February 12 / TASS /. Tax free shopping may be launched all over Russia starting October 1, 2018, said First Deputy Prime Minister Igor Shuvalov at a meeting with Russian Prime Minister Dmitry Medvedev and his deputies on Monday.

"If this plan does not reveal any drawbacks and it will be confirmed by the Federal Tax Service, that all systems work and that there won't be any loopholes for creating non-tax consumption of goods in Russia, then, we will propose to the government a decision on the extension of the program all over Russian Federation, starting on October 1, 2018," Shuvalov said.

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He added that it is important to thoroughly prepare for tax free shopping in Russia, in order to exclude any possibilities of illegal business gains. Shuvalov added that working with Russian agencies to introduce the pilot tax free shopping was rather complicated and the position of the Russian Ministry of Finance and the Federal Tax Service was one of caution, but the sides were able to reach an agreement and the bill was approved by the Russian Federation Federal Assembly. He explained that after the pilot program, tax free shopping may be available at the airports of cities hosting the World Cup in Russia.

"In order to have an appropriate database, we have included about 500 stores in this government decree... We hope that after March, April and May we will gather information that will allow us to make the decisions to have tax free shopping operating on the territory of all cities that host the World Cup," Shuvalov told Medvedev.

In turn, Medvedev demanded that if loopholes for creating illegal business from tax free shopping introduction are detected, that "these holes be patched up, and if possible, closed."

"It is necessary to maintain this program, because it is used all over the world, it creates additional incentives for the development of tourism," he said.

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