A New Tariff on Purchases in Foreign Online Stores Will Cost Russian Consumers between RUB 69.6 and 121.4 Billion per Year

20 may 2019 | Izvestia

The Analytical Center has assessed the initiative of the Association of Internet Retail Companies to introduce a single tariff on all purchases in foreign online stores. Deputy Head of the Analytical Center Tatiana Radchenko shared the conclusions drawn by the experts with an Izvestia correspondent.

Tatiana Radchenko
Tatiana Radchenko
Deputy Head

The experts believe the main negative impact resulting from the implementation of the initiative of the Association of Internet Retail Companies would be an increase in tax burden of end consumers, or, in simple terms, an increase in the final price paid by consumers for items purchased in foreign online stores. 

"Based on the data for 2018 we estimate that if we were to impose VAT or some other 20% tax on items imported via purchases in online stores, the Russian consumers would end up paying between RUB 69.6 billion and 121.4 billion per year in extra costs," Ms Radchenko said.

The Association of Internet Retail Companies has proposed imposing a 20% tariff on all purchases in foreign online stores. The Ministry of Communications objects to such drastic measures. The Ministry of Industry and Trade believes it's best to keep the current rules of the Eurasian Economic Union in place, under which the purchases of up to EUR 500 per month are not subject to any tariffs.

Source: Izvestia