The increase in VAT, which came into effect this year, has brought additional revenues of 426 billion rubles (approximately 4.7 billion euros) to the federal budget of Russia in the first six months of the year, announced the head of the Federal Tax Service, Daniil Egorov.
In addition to the increase in the VAT rate from 20% to 22%, the authorities collected another 522 billion rubles (about 5.7 billion euros) after numerous small businesses left the simplified tax regime and became VAT payers. Among these, companies with revenues between 20 and 60 million rubles paid 108 billion rubles (approximately 1.2 billion euros), and those with revenues between 60 and 450 million rubles – 415 billion rubles (about 4.6 billion euros).
According to the Russian Ministry of Finance, between January and June, the federal budget collected a total of 1.585 trillion rubles (approximately 17.4 billion euros) in additional VAT, including the tax applied to imports.
Under these circumstances, VAT has become the fastest growing source of income for Russia’s budget, recording an increase of 22.8% compared to the same period last year. On the other hand, the total revenues of the budget have only increased by 5.8%, while those from oil and gas have decreased by 22.7%.
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