The Central Bank takes into account the impact of VAT and utility rates for inflation, reported the press service of the regulator. The magnitude of increase of payment for housing and communal services after the increase in VAT now discussing the Ministry of construction and Ministry of economic development
Photo: Vladimir Smirnov / TASS
The value added tax (VAT) is put in tariffs for housing and communal services, the Central Bank takes into account this factor when forecasting inflation, said the press service of the Central Bank, received by RBC.
Monday, August 6, the newspaper “Izvestia” with reference to the press service of the Ministry reported that following the increase in VAT from 18% to 20%, which is scheduled for January 1, 2019, the Ministry proposes to increase by 2 percentage points and housing prices. Measure as write “news” referring to the MAYOR needed in order not to worsen the situation of resource-supplying organizations. The Ministry of construction publication also confirmed that the issue of the increase from 1 January tariffs after VAT is discussed. Now housing prices are rising annually on 1 July, however, the Association “housing and the urban environment” asked the head of the Ministry Vladimir Yakushev to increase them since January 1, due to the increase VAT.
Of the Central Bank in response to a request to RBC underlines that the regulator takes into account the impact of VAT on utility rates and, consequently, their impact on inflation. “It is possible to transfer the moment of indexation from 1 July to 1 January to change the time of rising prices, but will have no impact on aggregate inflation in 2019”, — stated in the message of the Central Bank.
Putin approved the VAT increase to 20%
In connection with the planned increase in VAT in 2019 it is expected a temporary excess of inflation of 4%, reminds the regulator. “This increase will have a one-time effect on prices, so the annual rate of consumer price growth will return to 4% in the beginning of 2020”, — said the Central Bank.
The Ministry of economic development proposed to take into consideration the VAT increase in utility tariffs
The Minister of housing and construction Vladimir Yakushev, answering the question of RBC, as will increase the cost of services from 2019 after the growth of VAT, said that his Ministry jointly with the economic development Ministry is now doing these calculations. “But if you ask how it will affect citizens, then you know that citizens have a protected growth. Even if this will be reflected in the tariffs, the citizens do not need to worry. The additional burden will fall on the budget, but not citizens,” he said.
The growth of the value added tax from 18% to 20% scheduled for January 1, 2019. The relevant law signed last week by President Vladimir Putin. It is expected that the VAT increase will give the budget an additional 600 billion rubles annually. Funds, as planned by the relevant ministries, will go to implementing the may decrees of the President, the execution of which will cost 8 trillion rubles.