- Deputies of the State Duma propose to revise the preferential VAT rate for food products, children’s products, and medicines
- The proposed reduction is from 10% to 5%
- If the inflation rate for a specific group of socially significant goods exceeds the overall inflation rate, the tax rate for that group will be reduced to 0% in the next tax period
- The changes, if accepted, will come into effect on January 1, 2026
- Currently, food products, children’s products, educational books, and medical goods are taxed at a rate of 10%
- The fixed VAT rate does not consider inflation dynamics in specific groups of socially significant goods, which can put additional pressure on consumers
- The proposed floating rate will adjust the tax burden based on inflation dynamics.
Source: garant.ru
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
