MOSCOW, December 19. /TASS/. The increase in value-added tax (VAT) in Russia will not be permanent, taxes should be reduced in the future, President Vladimir Putin said during the combined Direct Line Q&A session and year-end press conference headlined ‘Results of the Year’.

The Central Bank is constantly under pressure due to the level of the key interest rate, he said, adding that by law it is independent, so it is necessary not to interfere with the decisions it makes.

Moreover, Putin called the regulation of food prices by government bodies dangerous.

TASS has collected key statements by the head of state.

Economic indicators

Russia's GDP growth in 2025 equaled 1%.

The Russian economy grew by 9.7% over the past three years, which is much higher than in Europe.

The decline in Russia's GDP growth rate is a deliberate price to pay for maintaining the quality of the economy.

Overall, the inflation problem in Russia is being "solved"; by the end of the year it will be 5.7-5.8%.

"We have managed to maintain a good pace of growth" in real wages; they grew by 4.5% over the year.

This year’s labor productivity growth in Russia "will be modest."

The unemployment rate, which was already "at a historically low level," fell even lower to 2.2%.

Russia's gold and foreign exchange reserves have grown to $741.5 bln.

Russia's budget deficit will decline to 1.5%, "a good indicator" given the low national debt.

Taxes

The VAT increase in Russia will not be permanent: "Of course not. The ultimate goal is to reduce the tax burden in the future."

The purpose of increasing VAT was to achieve a balanced budget: "And overall, this worked out, I have already said this, including due to the fact that this decision was made."

Manufacturing businesses in Russia should "under no circumstances" be harmed by the transition to the new tax system.

Tax adjustments for SMEs should not create problems for businesses: "I will definitely bring this to the attention of the government and relevant government agencies."

Key rate

The Central Bank is constantly under pressure over the key rate: "By law, the Bank of Russia operates independently. And I try not to interfere with its decisions. I try to shield them from any outside influence and pressure. Overall, the Bank of Russia is not only coping, but it's acting quite responsibly."

Social responsibilities

The Russian government "deserves credit" for a balanced budget.

Social obligations to the population will be honored "in full."

Fighting shadow economy

It is necessary to get rid of the shadow economy and tax evasion: "This is such a serious task."

Food prices

State regulation of food prices is a "complicated and very dangerous" matter: "Because as soon as we start regulating, as soon as we set a specific target, the product disappears. In a market economy, this is precisely the result that typically occurs."

There are areas where such regulation is necessary, for example, for vital drugs: "There is a bar there that cannot be raised above."

Investment activity

The decline in investment activity is one of today’s problems, but at the same time banks maintain their level of lending: "And this requires the Bank of Russia to act with extreme caution."