The government canceled the preferential VAT rate for palm oil fractions

Fractions of palm oil have been excluded from the list of goods covered by the reduced rate (10%) of value added tax. Such a decree was signed by the Chairman of the Government Mikhail Mishustin.

The decision was made to reduce the use of palm oil in food products, said the press service of the Cabinet.

Changes to the Tax Code, which introduced a standard VAT rate of 20% for palm oil, were approved in Russia back in 2019.

In 2019, amendments were introduced to the Tax Code, which set the VAT rate at 20%. However, at the same time, the government decided to exclude products from the list of goods subject to preferential VAT.

However, the preferential rate on palm oil fractions was retained.

"Now they are excluded from the list as well. Thus, for palm oil and its fractions when imported into the country and sold in Russia will be subject to the standard VAT rate of 20%," the report says.

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Author: Ekaterina IvanovaMade
in Russia // Made in Russia