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\t\t\t\tRussia\u2019s Planned VAT Hike Expected to Push Inflation Higher, Finance Ministry Says
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Last month, Rosstat said the country’s economic growth was close to zero in the third quarter, while the Central Bank expected to keep interest rates higher for longer over the stubborn inflation rate.<\/p>\n
The regulator sees annual inflation to ease to its 4% target only in 2027.<\/p>\n
In order to plug holes in Russia’s stretched public finances, the Kremlin is looking to tap the pockets of citizens and businesses to plug a budget gap running at around $50 billion so far this year.<\/p>\n
President Vladimir Putin recently approved raising the value-added tax (VAT) to 22% from 20% next year.<\/p>\n
Lower oil prices were also a headache for the budget, with fossils bringing almost a fifth of the state revenues.<\/p>\n
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