Siluanov: Raising VAT to 22% will not be a blow to businesses

      This was stated by Russia’s finance minister Anton Siluanov at a meeting of the State Duma committee on budget and taxes, Rossiyskaya Gazeta reports.

      According to the minister, enterprises “will continue to operate as they have,” and the key factor for business will not be the tax burden but a reduction in the cost of resources in the economy. Siluanov noted that a balanced budget for next year will allow the Central Bank to lower the key interest rate, which will create conditions for investment growth and a reduction in firms’ costs.

      The minister recalled that the Central Bank forecasts a reduction of the key rate to 12–13% in 2026. Earlier the Finance Ministry submitted to the government a package of bills providing for an increase in VAT from 20 to 22% while maintaining a reduced 10% rate for socially significant goods.