The Russian budget will receive a solid income from increasing VAT
After raising the rate of value added tax (VAT) by two percent since January of this year, which is now 20%, the Russian budget will receive additional income in the amount of 800 billion rubles. These data are given by the Institute of Economic Forecasting (IPP) of the Russian Academy of Sciences.
More than half of this amount - 460 billion - will be paid by the country's population.
The projected size of government revenues is made without taking into account the likely increase in inflation, which can grow from four to five percent. In this case, the budget will receive an additional 120 billion rubles.
This forecast is confirmed by practice. In February of this year, price increases reached a record five percent year on year since January 2017.
In addition, due to higher VAT rates, other budget revenues will also increase. We are talking about personal income tax, income tax, import duties and other fiscal fees. This will happen due to an increase in the tax base.
In addition to inflation, other factors influence the size of the additional income from increasing VAT. For example, if economic growth slows down, then the effect of this measure will be negligible or zero.
It should also be taken into account that the positive effect of raising the value added tax to a large extent depends on where the additional funds will be sent.
More than half of this amount - 460 billion - will be paid by the country's population.
The projected size of government revenues is made without taking into account the likely increase in inflation, which can grow from four to five percent. In this case, the budget will receive an additional 120 billion rubles.
This forecast is confirmed by practice. In February of this year, price increases reached a record five percent year on year since January 2017.
In addition, due to higher VAT rates, other budget revenues will also increase. We are talking about personal income tax, income tax, import duties and other fiscal fees. This will happen due to an increase in the tax base.
In addition to inflation, other factors influence the size of the additional income from increasing VAT. For example, if economic growth slows down, then the effect of this measure will be negligible or zero.
It should also be taken into account that the positive effect of raising the value added tax to a large extent depends on where the additional funds will be sent.
Information