Mishustin cancels preferential rate for palm oil fractions

The preferential rate of 10% for palm oil and its fraction in Russia has been cancelled. Related Decree signed Prime Minister Mikhail Mishustin.

Up to this point, a value-added tax (VAT) of 10% was in effect for fractions of palm oil in Russia. Now they have introduced a standard VAT rate of 20%.

Changes to the Tax Code to introduce a standard rate were approved in 2019. At the same time, palm oil was removed from the list of exempt products. However, palm oil fractions remained on the code list for food products.

The document stated that this decision was necessary to reduce the use of palm oil in products.

May 5 Ministry of Industry and Trade supported Russian Steel’s proposal to limit the maximum tax payment level to 131 billion rubles.

Source: Gazeta


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