Russia drops gold tax to encourage savers to dump dollars

Russia’s President Vladimir Putin signed a law on Wednesday that exempts individuals from value added tax (VAT) on the purchase of gold in his country.

The measure provides support to Russian citizens, looking to invest their rubles, which have been decreasing in value amid Western sanctions after it’s invasion on Ukraine, according to reports by RT.

Moscow has imposed restrictions on the purchase of some foreign currencies, including the US dollar and the euro, which is the standard way for Russians to protect their savings in the past.

The new document was published on the state portal for the purpose of legal information. Corresponding amendments have also been made to the Russian Tax Code, as per reports.

The new legislation is retrospective and applies to purchases made since March 1.

Earlier, Russians had to pay 20 per cent from the purchase in VAT when buying physical gold. However, the VAT paid was not returned, when selling the precious metal back to the bank.

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