The State Duma increased VAT to 20%

The State Duma adopted a law increasing VAT from 18 to 20%. The new rate will be in effect from 2019, RIA Novostireports .

At the same time, all VAT benefits for basic socially significant goods and services will remain. The amount of insurance contributions to social non-budgetary state funds will also remain the same - 30%.

The government proposed increasing the basic VAT rate in June. According to Prime Minister Dmitry Medvedev, the rate increase will annually bring more than 600 billion rubles to the federal budget. The authorities hope that this money will help implement the May presidential decree.

This is not the first time that a 20% VAT base rate has been introduced. It was in effect until January 1, 2004, and then was lowered to 18%.

In March 2018, several Russian journalists reported harassment by the chairman of the State Duma Committee on International Affairs, Leonid Slutsky. On March 21, the State Duma Ethics Commission found no violations in the deputy’s behavior.