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Retail

Russian Retail Lobby Requests Tax Cuts To Curb Food Inflation: Report

Russia's major retail lobby has written to the government asking for VAT be reduced on socially important products, the Kommersant daily reported, along with other measures aimed at curbing food inflation and supporting the industry.

Annual inflation in Russia spiked in early March, soon after Moscow sent tens of thousands of troops into Ukraine, but has slowed a little since then, standing at 16.42% as of 17 June.

Lowering Value-Added-Tax Requirements

With price increases in staple goods hitting the poorest hardest, the food retail sector has been keen to keep a lid on inflation, and Russia's Association of Retail Companies (ACORT) has written to the Federal Tax Service, asking it to consider lowering value-added-tax requirements on such goods.

Kommersant, citing the letter, reported that ACORT had also asked for a tax deadline to be extended.

ACORT, which represents all of Russia's major retailershad no immediate comment.

Earlier this month, a major Russian retail lobby group said that the country's retail trade turnover will fall by up to 9% this year, as the sector battles logistics problems, supply chain issues and dwindling consumer purchasing power.

World food prices dipped in May for a second consecutive month after hitting a record high in March, although the cost of cereals and meat both rose, the United Nations' food agency said.

The Food and Agriculture Organisation's (FAO) food price index, which tracks the most globally traded food commodities, averaged 157.4 points last month versus 158.3 for April.

News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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