Russia proposes VAT cut on essential food items, children’s products, periodicals, and medical items.
The Russian State Duma received draft law No. 1011590-8 on 8 September 2025, proposing a reduction of the value-added tax (VAT) rate from 10% to 5% for certain socially significant goods, including food, children’s products, periodicals, and medical items.
The draft law also introduces a mechanism under which the VAT rate for a specific group of socially significant goods could be set at 0% if the inflation rate for that group in the previous calendar year exceeds the overall inflation rate for all goods.
Earlier, Russia’s parliament proposed draft law No. 955850-8, which seeks to reduce the VAT rate on specific food products from 10% to 5% to combat inflation in the food sector and enhance consumer purchasing power.
