The Federal Antimonopoly Service warned against food price increases due to VAT changes
The Federal Antimonopoly Service of Russia has warned federal retail chains and major industry associations to prevent price increases for socially important goods amid an increase in value—added tax (VAT) - the rate will remain at ten percent, the agency said.
The law on changing VAT from 20% to 22% will enter into force on January 1, 2026.
"The VAT change is not a reason to raise prices for socially important food products. The value-added tax rate for such goods will still be ten percent. The service has sent a corresponding letter to the largest industry associations and federal retail chains," the FAS said. Of Russia.
It is noted that the service drew the attention of market participants to the need to prevent economically unjustified price increases for food and non-food products and warned about the obligation to strictly comply with the requirements of antimonopoly legislation when carrying out trading activities.
"In case of violations, the agency will take appropriate response measures," they assured.