In Russia, it was proposed to reduce VAT from 22 to 20%

In Russia, they propose to reduce VAT from 22% to 20%. As Izvestia found out on April 29, such a bill has been prepared for submission to the State Duma by deputies of the Fair Russia faction led by Sergei Mironov.

"The subject of regulation is the reduction of the VAT rate from 22% to 20%. VAT is an indirect tax that is included in the price of a product or service, formally transferred by the seller, but in fact it is paid by the buyers," says the explanatory note to the bill, which is available to Izvestia.

The document also notes that reducing the VAT rate by 20% is a step towards curbing inflation, preserving real incomes of the population and maintaining stable business conditions.

"Maintaining the purchasing power of citizens will ensure a significantly more stable and healthy tax base in the long term compared to short—term fiscal tightening," the document emphasizes.

Non-cash participation: banks have begun to compensate small businesses for rising VAT costs

Will this allow entrepreneurs to save money and how will the initiative affect inflation?

Russian President Vladimir Putin has signed a law that exempts entrepreneurs from VAT on the simplified and patent taxation systems (USN and PSN) by the end of this year. The relevant document was published on April 25 on the official Internet portal of legal information.