Russia’s Federation Council (upper house) approved the law on the VAT (value-added tax) rate increase from 18% to 20% and adjusted rates of social payments, at a plenary session on Saturday, TASS reports.
VAT reliefs, such as reduced tax rates for food, children's goods, medical goods, as well as zero rates for domestic interregional air transport, will be retained.
The bill also envisions the reduction of the aggregate tariff of insurance premiums to state off-budget funds from 34 to 30%, and sets the tariff of insurance contributions to the Pension Fund at the rate of 22%.