The State Duma has proposed changes to the Tax Code that would remove VAT on expired products donated to charities by retail chains. A report published on Wednesday, June 28, notes that the bill was developed by deputies from the Liberal Democratic Party. The material is carried by News.
During the retail and consumption phase, Russia experiences an annual loss of food products amounting to about one-fifth of their production. The explanatory note attributes this waste to a mix of factors, ranging from natural and climatic conditions to human actions, including improper storage practices.
Parliamentarians point out that previous attempts to curb this problem have been made regularly, yet persistent gaps remain. They argue that transferring such goods to the public without compensation could be an effective measure; however, retail chains currently face a lack of VAT deductions for expired and discarded items, which discourages donations.
The bill aims to remove expired food products from the list of taxable objects when they are unconditionally transferred to third parties, making them exempt from VAT.
In this way, the plan seeks to address both the distribution challenge of this category of goods and their shortage among certain groups in society while ensuring a clearer path for charitable donations.
The authors of the proposal also suggest removing alcohol, as well as foods intended for children and dietary products, from the list of goods eligible for transfer to the population.
The LDPR press service reported that the bill has been sent to the government for review and that amendments are prepared to be supported in the relevant Duma committees.
In September 2022, Denis Manturov, head of the Ministry of Industry and Trade, stated that the ministries and the Ministry of Finance were working on tax conditions for food sharing. TASS reported the remark.
In July, Deputy Minister Viktor Yevtukhov indicated that tax burdens on retail chains should be aligned when food is either destroyed or donated to charity.
Under current rules, disposing of unsold goods allows a seller to withhold input VAT, but transferring similar goods to charity results in the loss of VAT deduction rights. Yevtukhov explained that it is more profitable to discard an unsold but usable product than to donate it for free.
How much do Russians spend on food…
Recent data show that average weekly expenditures fell by 0.9 percent to 5893 rubles. The annual growth rate of the consumer index stood at 4 percent, according to Romir.
The average ticket value declined by 1.2 percent from the previous week but rose by 4.6 percent year over year to 724 rubles.
…and how they evaluate their financial situation
Among respondents, 26 percent viewed their financial situation as good, 55 percent as moderate, and 18 percent as poor according to the opinion poll.
Ten percent reported improvement in the last two to three months, 19 percent saw a deterioration, and 71 percent noted no change.
Looking ahead, 24 percent expect better financial conditions in the coming year, 14 percent anticipate worse results, and 43 percent foresee no major changes.