OREANDA-NEWS. On 02 July 2009 was announced, that the proposal to increase the value-added tax rate is being discussed now, Finance Minister Andrei Kharkovets said when in the upper house of parliament.

“The decision to raise the VAT rate is still discussed – the proposal is raw. It has been discussed today at an enlarged meeting of the Council of Ministers attended by representatives with the Presidential Administration,” Kharkovets said.

The Finance Ministry suggests raising the rate as soon as possible, not on January 1, 2010, he said.

The higher VAT rate is part of an integrated program, which also presupposes a reduction in turnover taxes and profit tax rate.

“The VAT does not affect exporters, while profit and turnover taxes do, so these measures will back our exporters,” he said.

“Companies will be able to save around 1.2 trillion ruble, which is a hard blow on the budget, therefore we have decided to increase the VAT rate to compensate – it is the most stable source of revenues for the state budget,” Kharkovets said.