Russia may gradually replace VAT by sales tax in 2009-2011
Posted: 04 Jan 2010, 16:13
Russia's value-added tax may be gradually replaced by the sales tax in 2010-2011, a presidential adviser said.
The head of the expert department with the Kremlin administration, said the move was related to the refund of the value-added tax on export operations, which involved a complicated procedure in comparison with the sales tax.
"We are becoming increasingly convinced that we need to withdraw from this tax [value-added tax] gradually in 2009-2011," Dvorkovich said.
Dvorkovich also said the gradual replacement of VAT with the sales tax would allow the government to make the transition without any significant budget losses.
The head of the expert department with the Kremlin administration, said the move was related to the refund of the value-added tax on export operations, which involved a complicated procedure in comparison with the sales tax.
"We are becoming increasingly convinced that we need to withdraw from this tax [value-added tax] gradually in 2009-2011," Dvorkovich said.
Dvorkovich also said the gradual replacement of VAT with the sales tax would allow the government to make the transition without any significant budget losses.