Vat Increase

Who shifted the burden of bureaucratic State content

Повышение НДС: на кого перекладывается бремя содержания чиновничьего государства

VAT increase with 18% before 22% with simultaneous reduction of social security contributions with 30% before 20% – just an attempt by the State to collect those taxes, don't pay that hard. At the expense of other requisitions, which, receiving part or all of the wages in envelopes, the Russians do not pay anyway.

Vat Increase: the consequences of

In a crisis the developed countries often go on a way of not only reducing interest rates, But while tax cuts. This is to ensure, to stimulate business, help him to overcome is not the best of times.

The opposite policy adheres to the Russian authorities, weakly collapsible in finance, as though, and the rest. Instead of having to support those, who is still unable to produce, She chooses Peel with entrepreneurs as much as possible. And so, to avoid the payments turned out to be maximally difficult to.

The point is that, that value added tax is charged on virtually any products sold or services rendered and accounted for in accounting for individual account. Its size does not depend on, whether a business profit or, Vice versa, slipping into a deep loss. The amount to be paid shall be reduced by the, that was paid for this tax when purchasing products and is credited with its further sale. As a result, the State must prove all-chain.

Actually raising the VAT on 4% means direct growth the ultimate cost for manufacturers, dealers and ultimately for consumers whatsoever. However, it should be understood, that direct artificial increase in prices clearly should lead to a reduction in already low demand. With few exceptions,: those products, without which people cannot do, such, for example, How to bread, milk or "plastic" Chinese noodles, the relevance of that people inevitably grows in the crisis.

Will the VAT increase to economic recovery? On the contrary,. Manufacturers and sellers of goods and services will gain as a result of the reduction in the number of customers and clients, and it means, lose possible profit, not being paid on loans. Once again, reduce wages or reduce staff.

The public sector and the VAT hike

Fully VAT hike should affect those businesses, which are connected with the State. But with a certain amendment. On the one hand, They also, like all the rest, lose money on taxes. And on the other, power will be able to manage additional assets, some of them will be stolen using corruption schemes, as cancer struck during the reign of President expired the whole country. Something else that will be spent on the social obligations.

And only a portion of this money, received from raising VAT, still reaches the industry. As military and other not particularly right society of orders. Or national projects-locomotive directions lumbering public funds.

To date it is known, that order 70% The country's GDP is already in enterprises, related to State. We can be sure, that financially it is far not the most efficient organization. Nevertheless,, taken economic decisions aimed at maintaining their. Most likely, This is due to the personal interests of those, who is in power.

The VAT hike in comparison with other countries

VAT in Europe is called VAT and is in different countries from 17 and before 25 per cent. With their 22% Russia turns out to be somewhere in the Middle. But actually, the difference is visible to the naked eye. In other countries, perhaps two policies. Some of them are more supportive of initiative and entrepreneurship. People pay less tax, but get the abbreviated number of social benefits.

Less total pay in Luxembourg – 17% and Malta- 18%. More other content State costs in Finland- 24% and, for example, in Sweden-whole 25%. Thus it is necessary to understand and assess the level of social protection, that accorded to nationals of these countries. Most of them on each individual Syrian refugee spent more money, than in our country on the salary of a teacher or doctor.

In Russia the VAT hike occurs when that, that population continues to tighten belt, and of new money it won't get anything at all. Even vice versa, everywhere declining expenditure on education, health and all that stuff-except being on the wind of money in upkeep of corrupt officials and useless and even harmful for the country deputies.

The VAT hike and economic structure

VAT increase affected all sectors of the economy, In addition to ... export. Really, value added tax is not paid at all for products, exported outside the country. And it means, that additional deductions do not touch raw enterprises.

Just those, that is entirely in the hands of the Kremlin Entourage expired President Vladimir Putin.

Whether raising VAT help the export potential of the country, encourage enterprises to foreign markets instead of domestic? Theoretically, Yes. But in practice, is there anything such, that Russia could invite developed countries, In addition to oil, gas and metals as cast iron or rolled, intended solely for further processing?

Thus, In fact, the VAT hike clearly would not change the structure of the Russian economy, but only provide regular preferences elite, restraint political, economic, judicial, military and police authorities in Russia. Shifting, of course, the burden of paying the whole state machine-all other.

Reduction of contributions in funds

The lowest rate of personal income tax in Russia is an entrenched myth, created by Kremlin. In fact, requisitions from each in the amount of 13% paycheck explained simply.

Firstly, such a low rate allows officials and related "entrepreneurs" to pay less of their money. And contributions relate to population increasingly, because the payments there are maximum limits. That is, the proposed reform will increase the life of the elite at the expense of all others.

Secondly, income tax from natural persons, Unlike VAT, goes not to the federal budget, something remains on the ground. But authorities are interested in their zagrebushhih all hold hands. Most likely, This is what saved the Russians from other ideas: instead of raising VAT increase tax on salary with 13% before 17%. Vertical of power did not want to share part of this money with the regions.

Thirdly, and this is the most important thing, in fact, with the payroll is paid does not 13%, and so much plus contributions.

However, imbeciles among real entrepreneurs, ready to give a third and more money to the State on the questionable military adventures and plundering in their favor, not so much. So across the country resistant to pay some of the money people practice officially, and a larger share-in an envelope without any fees at all.

In this situation, power was puzzled by the question, How to withdraw as much funds from shadow traffic. In this respect, reducing payments to the funds, The Finance Ministry simply luring executives withdraw at least something from shadow traffic.

In reality, real wages power control cannot practically no. Here follows the path of indirect taxes, putting forward the idea of raising VAT, which is simply easier to assess and select.

Vat Increase, the outcome of the

The end result of raising VAT will further deepen the crisis. The burden to pay taxes will prove even more population shifts, because each of us pays the VAT everytime, shopping. At the same time, you can expect an acceleration of inflation is roughly the percentage of growth.

It is important to understand, What VAT increase, also, as with any increase in the tax burden in a time of crisis, not exit it, and vice versa, deterioration of the situation.


  1. In Ukraine for years 20 and at all levels tell, VAT – the most corrupt tax, but it somehow does not cancel. In this regard, Russia was Ukraine does not differ. Corrupt Gemini – Brothers…

  2. Каждый год повышают НДС, при этом цены на товары растут, а зарплаты у людей остаются на прежнем уровне. Этот налог не влияет на качество товаров и услуг, просто обдиралово от государства.


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