According to the press service of the lower house of the Russian parliament, the necessary amendments to establish a reduced rate of value added tax in respect of certain types of fruit and berries, including grapes, will be made in article 164 of part two of the Tax Code of the Russian Federation.
In accordance with the explanatory note to the draft law, a reduced VAT rate will be applied both for the sale of fruits and berries of Russian production, and for the supply of imported products.
"Despite the fact that this reduction in the VAT rate will also apply to imported products, which in the short term will have a positive impact on importing organizations, the overall increase in the competitiveness of domestic producers of fruit and berries will subsequently replace a significant share of imports," the project initiators noted.
“It is necessary to ensure the availability of high-quality fruit and berry products and support domestic producers. Despite the significant growth of the industry in recent years, the amount of imported products still exceeds its own production by more than one and a half times. The task is to create additional conditions for import substitution,” said Speaker of the State Duma Vyacheslav Volodin on the need for amendments.
Source: a-ipp.ru
