Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Primakov Axes 2 Tax Measures




Prime Minister Yevgeny Primakov on Wednesday abolished the previous government's 3 percent increase on import duties and an extra level of value-added tax on some food staples and medicines.


"We have removed a 10 percent increase of VAT for food and drugs. We have canceled extra duties of 3 percent on [imported] goods," Primakov told the Federation Council, the upper house of parliament.


Primakov did not elaborate on what food or medicine items were affected or whether a state decree had been signed. No additional details were available from the federal government, the State Customs Committee or the State Tax Service.


The government of former Prime Minister Sergei Kiriyenko ordered the unpopular fee hikes as part of an emergency tax package in July. A tariff of 3 percent was added to existing duties on all imports, and a preferential rate on some basic food goods and medicines was dropped, increasing the VAT from 10 percent to the normal 20 percent.