Krasnodar, 22 August – Yug Times. A two-stage system will reportedly let the communal utilities providers compensate for the new VAT rate to be introduced on January 1, 2019. Russian Ministry of Economic Development plans to raise the tariffs next January by 1.7%, and next July by 2.4%. The utilities providers are not happy about this proposal: they want to have the tariffs fully indexed by 4% to compensate for the increased VAT rate.
The growth of the tariffs will be a single payment, the government assured. Ministry of Construction stated that the possible rise of the VAT will not affect the population, because for them the payments for the utilities are restricted by the government.
The final decision on the possibility of introduction of the two-stage utilities rates indexation in 2019 will be taken by this September, Vice Prime Minister Vitali Mutko announced.
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