The Russian government is considering the possibility of replacing the current system of VAT sales tax starting in 2009. Arkady Dvorkovich, head of the expert management of Putin's administration, confirmed during a lecture
Moscow International University that the transition to a sales tax can be very profitable, because the current VAT system is becoming increasingly difficult to manage, especially in light of export operations.
Dvorkovich also noted that the VAT, together with a unified social tax, to avoid increasing the number of employees, as well as more suitable for Russia, based on the natural resources of the economy. «Thus, we conclude that this move is justified», - he reiterated. VAT rate in Russia currently stands at 10% for the «public-key» goods such as food and children's clothes, and 18% for other goods, although the Government is considering the possibility of introducing a uniform 13% VAT. Dvorkovich believes that the transition to a sales tax could happen from 2009 to 2011, without any serious violations.
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