Home / Knowledge / News / Finance Ministry against proposal to cut VAT
Finance Ministry against proposal to cut VAT
Aug '08
The Economic Development Ministry of Russia has proposed a one third cut in value-added tax (VAT) bringing it down from 18 to 12 percent. However, if the proposal gets an approval, it is likely to come in direct conflict with the Finance Ministry which openly rejects such a measure.

The Finance Ministry expressed its disapproval to the media through Mr Alexei Kudrin, Finance Minister, who reasoned that such reduction in VAT would be an absolutely destructive measure for the entire industrial sector.

While the President has favored a slash in tax, Prime Minister Vladimir Putin has called for the dispute to be resolved by August. There are implications that a lower VAT rate could be implemented as early as 2010.

However, certain economists have pointed out that lowering tax would severely squeeze Government's budget and adversely impact the oil market. Besides, such a move cannot be justified unless accompanied by reduction in Government spending. Some have even gone to the extent of saying that VAT cut may be an effective way to boost growth but an unnecessary one.

Must ReadView All

Apparel/Garments | On 27th Jun 2017

Vietnam to build fashion, textile, trading centres

Vietnam's Ho Chi Minh City will build large centres for designing...

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Cindy McNaull

We have broad range of options in durable fabrics

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search