Central Bank of Russia Opposes VAT on Bank Card Transactions, Citing Higher Banking Costs

• The Central Bank of Russia opposes reinstating VAT on bank card transactions, warning it will increase banking service costs and make non-cash payments less attractive.
• The regulator argues that the tax will reduce banks’ profitability, limit bonus programs, and force banks to raise fees on other products.
• The Central Bank highlights risks to major payment systems, including Mir, Fast Payments System, and the digital ruble, especially under sanctions.
• The Central Bank urges parliament to consider these concerns before the bill’s second reading.
• The Accounts Chamber and Finance Ministry note there is no clear calculation of the budget impact from abolishing the VAT exemption.

Source: interfax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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