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Producers fear of drop in demand due to the increase VAT.
Manufacturers of meat, milk and soft drinks believe that the increase in value added tax (VAT) will lead to a decline in demand for food.
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It is reported by RBC with reference to the Association "Rusprodsoyuz", national Union of milk producers (Soyuzmoloko), National meat Association, the Union of manufacturers of soft drinks and mineral waters and the group "Rusagro".

In particular, Rusagro considers a measure to tax increase "moderately negative" for themselves. "The increase in the tax rate by 2 percentage points could increase inflation by 0.5-1.0 percentage points Increase in consumer prices will put pressure on purchasing power and will reduce the level of real disposable incomes, ceteris paribus. Although, as a rule, consumers tend to save on food in the last instance, it is possible to reduce demand for products such as meat, in particular pork",— notes the group of companies.

Executive Director of the Association "Rusprodsoyuz" Dmitry Vostrikov believes that beef and pork will substitute chicken, and milk, butter and cheese products with vegetable fats. Consumption of fish, chocolate and fresh fruit, in his opinion, will also be reduced, and the consumption of bread, on the contrary, may increase.

 

How to change VAT in Russia

The representative of "Soyuzmoloko" Maria Rebit said that the VAT increase may have a negative impact on the level of consumption of dairy products by the population with the lowest income. Executive Committee of National meat Association Sergey Yushin said that the increase in VAT may affect the entire chain of meat production — for example, will increase the price of medicines and premixes, transport and logistics services.

President of the Union of manufacturers of soft drinks and mineral waters Maxim Novikov said that now industry is on the verge of profitability and any additional load is "market sensitive". He predicts that the decline in sales due to the decline in consumer activity will feel in the first place the subjects of small and average business.

About the VAT increase, the government announced on June 14 and June 16 the bill was introduced in the state Duma. First Vice-speaker of the state Duma Alexander Zhukov (United Russia) said that the document will be considered in the first reading on 3 July. The business officially opposed the increase of the value added tax — its negative feedback on the government bill that involves increasing the 2019 VAT from 18% to 20%, sent to the state Duma "Business Russia" and "OPORA Russia".



Translated by service "Yandex.Translation"
Источники: Коммерсантъ
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