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Medvedev announced the government’s plans to raise VAT and retirement age

This tax is included in the price of most goods and services.

The Russian government plans for the first time since 2004 to raise the rate of value-added tax (VAT) – the tax that is created at all stages of production of most goods and services and as of 2018 is 18%. This was announced by the head of the government Dmitry Medvedev.

20%
will amount to value-added tax from January 1, 2019

According to Anton Siluanov, the First Deputy Prime Minister and Minister of Economy of Russia, the increase in the VAT rate will annually bring the Russian budget an additional income of 600 billion rubles. This will allow covering a third of the amount for the implementation of new “May decrees” over six years, but will increase the final prices by 0.7-1%, according to experts.

Medvedev also proposed raising the retirement age in Russia as early as 2019. According to the government plans, the phased increase will last until 2028 for men and up to 2034 for women. The total retirement age should be 65 and 63 years, respectively.

According to Medvedev, the changes will be smooth: in the year of 2020 men will be retiring at the age of 61 and women 56 years old, and in 2022 – men aged 62 and women 57 years old. Such a scheme, according to the Russian prime minister, will allow annual raising current pensions by about a thousand rubles.

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