The Government of the Russian Federation considers the VAT rate reduction up to 10% for fruit & berries of local production.
In the 25th of April the Prime Minister of Russia Dmitriy Medvedev delegated to the Ministry of Finance, the Minselkhoz & Ministry of Economic Development of the Russian Federation to make suggestions concerning the state support activities of fruit-growing. Among the others the possibility of VAT rate reduction for fruit & berries was discussed.
In addition to the VAT rate reduction among the considered state support items of the fruit-growing cluster were the government grants for home producers, the import quotas impose for some fruit (for example, apples), the state-run programs, focused on the technical equipment & the logistic system development (fruit stores building).
Some TASS experts think the government grants are more effectual measures of local producers support. It’s logical that the discounted VAT rate is more important for big producers, because the middle-size & small market players mostly apply the simplified taxation scheme. The most of experts consider the VAT rate should be reduced only for home producers, and should stay on the current level of 20% for the rest. Some experts notice the state grants should be target-focused & meet the production intensity.
The discounted VAT rate is now used for the wide list of fast moving consumer products. Among them are vegetables, some fish & sea products varieties, baby & diabetic nutrition, bread, cereals, flour, noodle products, salt, sugar, dairy products, meat, eggs, margarines & vegetable oils.
The Press service of the Ministry of Agriculture of the Republic of Crimea notices, that in spite of the state support form, whether it is the government grant or discounted VAT rate, it will help to start using the out-of-use lands, to speed up the rate of new orchards & vineyards establishing, to increase the fruit & grapes crops. The regional officials of the Dagestan, Krasnodar & Stavropol Territories & other regions of the Southern & North Caucasian Federal Districts mark the positive effect of the suggested activities.