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Russian government plans VAT hike and raising the retirement age

Reuters with CNBC.com
Key Points
  • Medvedev said the so-called "tax maneuver," which envisages a gradual increase in the mineral extraction tax (MET) and a cut in export duties on oil and refined products, was on track to be completed in 2024.
  • Meanwhile, the government also proposed to increase the retirement age to 65 years from 60 for men and to 63 years from 55 for women, Medvedev said.
Russian President Vladimir Putin (R) and Prime Minister Dmitry Medvedev (L) attend a meeting in Moscow in May 2015.
Sasha Mordovets | Getty Images

Russia's government has proposed raising value-added tax (VAT) to 20 percent from 18 percent, starting from 2019, Prime Minister Dmitry Medvedev said Thursday.

Medvedev said the so-called "tax maneuver," which envisages a gradual increase in the mineral extraction tax (MET) and a cut in export duties on oil and refined products, was on track to be completed in 2024.

Meanwhile, the government also proposed to increase the retirement age to 65 years from 60 for men and to 63 years from 55 for women, Medvedev said.

The government proposes to change the retirement age gradually, starting from 2019, Medvedev said, adding that this would allow for an increase in pension payments.