Expanded Discussion on Expired Goods Distribution and VAT Exemption

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A proposal is circulating in Russian political circles that would open a path for authorities and retailers to redirect expired goods into the hands of the public. The draft legislation, prepared by the LDPR faction and covered by the media, envisions a systemic change to the Tax Code and its treatment of outdated items. The central idea is to reclassify certain expired products and bottled water as items that can be distributed free of charge without triggering VAT obligations, provided the distribution is targeted at individuals rather than commercial channels.

Supporters of the idea argue that current rules create a barrier to charitable distribution. Retail chains often face tax and regulatory pressures that make charity work financially unattractive. The draft suggests that allowing free distribution of expired items could align legal incentives with social benefit, removing what some see as an unnecessary fiscal burden while still maintaining controls over how goods reach consumers. However, the bill explicitly excludes certain categories from this reform: foods intended for children, diet products, and alcoholic beverages would not be eligible for the VAT exemption or free distribution under the proposed framework.

In parliamentary discussions, lawmakers emphasized that the goal is not to reward waste but to enable the use of goods that remain safe for consumption when handled properly. The intention is to encourage charitable organizations, social programs, and well-run retail networks to redirect these products toward people in need, rather than letting them vanish from the market entirely. Critics, meanwhile, caution that the approach could complicate supply-chain management and raise questions about consumer protection, labeling, and residual risk mitigation. The balance between generosity and responsible distribution remains a focal point of the debate.

The initiative has attracted interest from the federation’s largest retail groups, several parliamentary committees, and consumer advocacy voices. If the proposal progresses, it would be sent to the government for review and potential refinement before it reaches broader legislative consideration. The process highlights how policy experimentation can intersect with charitable aims, tax policy, and everyday business operations in a country undergoing ongoing fiscal and social dialogue. As discussions advance, stakeholders will continue to weigh practical implementation details against the principle of reducing waste and increasing access to goods for those in need.

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