Putin explained the decision to increase VAT

President Vladimir Putin explained the increase in VAT by the need to prevent the growth of the non-oil and gas budget deficit. The head of state stated this during a press conference.

More. Thus, the president answered the journalist's question about whether the authorities' decisions to raise VAT and introduce a tax on the self-employed create too much burden on Russians.

• The President noted that Russia, as an oil-producing country, has a non-oil and gas deficit, which is formed from the sale of oil and gas. According to him, in 2009 it was very high - about 13%, because the state after the crisis was forced to spend petrodollars on "the fulfillment of social obligations."
• Now the non-oil and gas deficit is 6.6%, and next year it should be at the level of 6%, the president pointed out.
• The increase in VAT is necessary , among other things, in order to contain this figure, the president said.

Context. From January 1, 2019, the VAT rate will increase from 18% to 20%. Also in 2019, a tax on the self-employed in four regions of the country will begin to operate in a pilot mode ( more ).

Liana Faizova