Published in:Monitoring of Russia's Economic Outlook. 2017, Moscow, IEP ; No. 9, pp. 6-10
Extent:
1 Online-Ressource (5 p)
Language:
English
DOI:
10.2139/ssrn.2973787
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 25, 2017 erstellt
Description:
The idea of reducing insurance contributions from the current 30% to 21–22% while raising the VAT rate from 18% to 21–22% has been debated a lot since late in 2016. It is assumed that such a tax manoeuvre can reduce domestic producers' labour costs, and neither exporters nor investments will be affected by VAT growth because the former are entitled to VAT refund and the latter are eligible for a VAT credit for investment goods. Accordingly, it is expected that financial benefits for businesses may subsequently speed up economic growth rates, as well as have a positive effect on the employment rate and on the balance of trade. The question is whether these expectations are reasonable enough