Reducing VAT on socially significant goods: a step toward improving the economic situation in Russia

The VAT reduction will have a positive impact on citizens' living standards, as basic goods will become more affordable. The reduced rate will apply to products such as MEAT , MILK , eggs , fruits and vegetables , as well as animal feed. This measure will help support both consumers and producers, strengthening the agricultural sector.

One of the features of the proposed bill is the ability to flexibly respond to inflation. If inflation on socially significant goods exceeds the general level, the VAT rate could be reduced to 0%, which would help reduce the tax burden on citizens during difficult times.

While budget revenues are expected to decline in the short term, the VAT reduction should lead to increased economic activity and gross domestic product (GDP) growth of 1% over three years. This could positively impact revenues from VAT and other taxes and support families with children by making basic goods more affordable for low- and middle-income households.