Now, any vegetable oil is subject to VAT at a concessional rate of 10%.

The amendment makes changes in part two of the Tax code and abolishes the preferential VAT rate of 10% in respect of transactions of sale of palm oil, in respect of such operations will apply the standard 20% rate. Norm will come into force after one month from the day of official publication of the law, but not earlier than the first day of the next tax period for VAT.

In the text of the resolution of the state Duma on the adoption of the law in the third reading contains a recommendation to the government in order to prevent the increase in consumer prices for basic necessities in the preparation of draft amendments to the budget for 2019 and the formation of the Federal budget for the next fiscal year "to provide additional revenues of the Federal budget, the resulting increase to 20% VAT rate in relation to palm oil at its import to the territory of the Russian Federation on the implementation of measures to improve productivity in dairy farming in the framework of the state program of development of agriculture and regulation of markets of agricultural products, raw materials and food for 2013-2025".

According to the data cited earlier, the head of the Duma Committee on budget and taxes Andrey Makarov, the abolition of the VAT exemption for palm oil will budget up to 5 billion rubles.

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