The state Duma adopted in the 2nd reading the draft law on increase of the rate of tax deductions on added cost (VAT).

According to the document, From January 2019, the tax rate will increase to twenty % From the current eighteen. While preserving preferential rates, and will remain in force rights of automobile manufacturers to obtain a deduction for amounts of VAT paid When purchasing goods, works and services, even if they were acquired at the expense of budget subsidies or public investment.

in addition, the draft law extends until 2025 the action of the zero rate of VAT to air transportation in the Crimea and Sevastopol, and sets the same rate for flights to the far East. Zero rate VAT on air travel in the Kaliningrad region are also invited to apply until 2025.

currently, domestic air travel subject to VAT at a concessional rate of 10%, with the exception of the Crimea and Sevastopol, which a zero rate is set until January 1, 2019, and the Kaliningrad region, for which it is valid indefinitely.

the bill also maintains the current contribution rate for compulsory pension insurance
sections: Politics