The strategic priority of changes – financial support of the needs of the occupation army, is indicated in the document.
“The resources planned in the budget will ensure the equipment of the armed forces with the necessary weapons and military equipment, the payment of monetary allowance to military personnel and their families, as well as the modernization of enterprises of the defense and industrial complex,” the Ministry of Finance said.
They also offer “optimization” of benefits for small and medium -sized enterprises. The ministry’s proposals should still be approved by the Russian parliament.
The authorities of the Russian Federation, raising the VAT rate, expect, first of all, to reduce the budget deficit, Reuters noted. One of the interlocutors noted that it is possible to fill the treasury of the Russian Federation only due to tax growth, since the space for reducing expenses is almost exhausted.
Analysts of the Russian portal “Clerk.ru” believe that an increase in VAT to 22 % can bring the budget an additional 1 trillion rubles per year (approximately 0.5 % of GDP).
VC.ru experts warn of the negative consequences for business, first of all, it will spur inflation, they say. From increasing VAT, companies with a high share of this tax in the structure will suffer the most strongly-this is construction (especially residential), the service sector, retail, as well as an IT sector.
