Russian Prime Minister Dmitry Medvedev said he had decided to reduce to ten percent the VAT on fruit and berries, RIA reported.
On his Facebook page, Medvedev explained that the decision was made after a discussion with members of the government and State Duma deputies.
“In addition, this should contribute to lower prices for consumers. Yesterday, during a visit to the headquarters of ‘United Russia’, it was agreed that the bill would be submitted to the State Duma by deputies,” he added.
The bill was introduced by State Duma Speaker Vyacheslav Volodin along with the leaders of the factions. As previously reported by the head of the ‘United Russia’ faction, Sergei Neverov, this proposal was discussed back in October last year at a meeting that President Vladimir Putin held in Stavropol.
According to Neverov, two options were being considered to support domestic producers: either to give them all a subsidy or to set preferential VAT. As a result, the deputies decided to take the path of reducing VAT, since all agricultural products are subject to this tax at a rate of ten percent.
Since January 1, the value-added tax rate has increased from 18 to 20 percent. At the same time, all the existing benefits are preserved.