According to the survey, 62% of Russians believe that not all products are available to them, but are available among the leading categories: accessories and components for gadgets and cars, household appliances and electronics, as well as shoes, clothes and accessories. Almost a third of survey respondents say the availability of their usual goods has decreased in the last 2 years. At the same time, experts note that reducing the threshold to 200 euros will lead not only to an additional limitation in range and a decrease in affordability, but also to an increase in the inflation rate.
According to experts, ordering foreign goods is a necessity for Russians, and the share of cross-border trade accounts for only 0.5% of all retail trade in Russia. Almost 60 percent of Russians prefer foreign purchases due to lower prices, more than 40 percent due to the lack of necessary goods in their region, and a third due to a wider range of products.
Experts say it is important for Russians to have access to goods worth over 200 euros, as these are often rare items with little or no alternatives in the domestic market, making shopping cheaper for residents of the country. By lowering the thresholds to 200 euros, one in four users will have to give up expensive purchases and one in three users will order less. At the same time, the resources spent on parcel processing and data collection for the Federal Customs Service will increase significantly, and budget revenues from lowering the threshold will be completely insignificant – about 0.002% of the 2024 budget.
Business representatives participating in the study point out more harmful consequences for the sector, such as a decrease in the number of employees in companies, including logistics and customs operators, and a subsequent decrease in the tax contributions of these companies to the budget.
Previously, online trading market players and experts reported that lowering the thresholds from 1,000 euros to 200 euros could lead to an increase in product prices of up to 15% and a decrease in sales.
In order to combat sanctions pressure, duty-free import thresholds for goods for personal use purchased from abroad on Russian markets were set at 1,000 euros for the first time in April 2022. The impact of increased duty-free import thresholds helped prevent shortages of goods in the domestic market, increase consumer demand, and also contain the increase in prices of consumer goods.
If the Russian Government does not raise the issue of extending the threshold norm to 1,000 euros in the EEC Council, starting from April 1, 2024, the norm of duty-free import limits will decrease fivefold – from 1,000 euros to 200 euros.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.