Date: 5 months ago   Category: Economy

The Central Bank predicts control of business activity in 2019 because of increase in the VAT — Rambler News Service


The planned increase in the VAT next year can exert constraining impact on business activity in the Russian Federation, the press service of the Bank of Russia has reported. "In 2019 the planned increase in the VAT can exert the small constraining impact on business activity (mainly at the beginning of a year). The additional received budgetary funds in 2019 will be allocated for increase in the public expenditures, including investment character" — it is said in the press release of the regulator. The Central Bank has specified that the predicted rate of a gain of GDP next year will be 1,2-1,7%. The regulator doesn't exclude increase in rates of economic growth in Russia in the next years. Impact on it will be exerted by realization of the planned structural measures. On Friday, October 26, the Central Bank has kept a key interest rate at the level of 7,5% per annum against the background of stabilization of the domestic financial market and maintaining the increased pro-inflationary risks. On August 3, 2018 the President of Russia Vladimir Putin has signed the law on increase in a rate of the VAT from 18% to 20%. The State Duma has adopted the relevant bill on July 24. The document also supposes decrease in a cumulative tariff of insurance premiums in state non-budgetary funds from 34% to 30%. The law will come into force since January 1 of the next year.

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