Overview

• Speaking at the Valdai forum on Oct. 2, Vladimir Putin outlined how a VAT increase is under consideration but not decided.
• He acknowledged that a higher rate would raise the tax burden and dampen economic growth.
• He argued the change could help preserve key macroeconomic parameters and build a fiscal buffer.
• He said the measure could improve coordination between the Central Bank’s key-rate decisions and government spending.
• RIA Novosti published his remarks from the session, which focused on the policy’s potential effects rather than any timetable.