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Kremlin says no further VAT rate increase planned

MOSCOW, November 5. /TASS/. The Kremlin is neither discussing nor planning any further increase of the value-added tax (VAT) rate, press secretary of the Russian President Dmitry Peskov told reporters on Tuesday.

"There are no discussions concerning the further rate increase at the moment; no plans are also present in this regard," Peskov said.

According to new calculations of the Finance Ministry for the draft federal budget of three coming years, extra revenues from the VAT increase will grow by 26% and amount to 639 bln rubles ($10.1 bln) in 2020, RBC reported earlier. The rate increase will provide for 686 bln rubles ($10.8 bln) in 2021, 737 bln rubles ($11.6 bln) in 2022, and over 2 trillion rubles ($31.6 bln) for 2020-2022 in total, RBC said. "This was exactly the immediate goal of the rate increase," Peskov noted in a comment.

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