The Ministry of Finance did not support the introduction of zero VAT on tangerines and New Year trees – Kommersant

The Ministry of Finance did not support the idea of ​​introducing a zero rate of value added tax (VAT) on the sale of tangerines and New Year trees, as it does not believe that this will reduce the cost of goods. This is stated in the response of Deputy Head of the Ministry Vladimir Kolychev to the proposal of Deputy Speaker of the State Duma Vladislav Davankov (“New People”).

According to the deputy minister, reducing the VAT rate “is not a transparent measure” of state support, and also “does not guarantee a reduction in the cost of goods” for the consumer. He recalled that a reduced VAT rate of 10% is now applied to the sale of tangerines.

“If a reduced VAT rate of 0% is established for tangerines and New Year trees, a negative difference may arise between the VAT amounts calculated by sellers of these goods when selling them, and the VAT amounts submitted for reimbursement from the federal budget,” Mr. Kolychev is convinced ( quote from TASS)

He fears that the introduction of zero VAT on tangerines and New Year trees will “set a precedent” for similar measures in relation to other goods, which will “lead to additional revenue losses” for the budget. The Deputy Head of the Ministry of Internal Affairs clarified that when importing goods into the Russian Federation, the same VAT rates are applied as when selling them in the country. “The establishment of a reduced VAT rate for New Year trees will lead to taxation at this rate of New Year trees imported into the territory of the Russian Federation,” he added.

Party “New People” asked The government will cancel VAT on tangerines and Christmas trees due to the sharp rise in prices of these goods on the eve of the New Year. Vladislav Davankov sent a corresponding appeal to Prime Minister Mikhail Mishustin in early December. The authors of the initiative noted that, according to Rosstat, at the end of October, tangerines had risen in price by more than 80% year-on-year, and artificial Christmas trees had risen in price by 21%.

Laura Keffer