AKIT opposed sales tax
29.08.2014 3213

AKIT opposed sales tax

Major Russian online retailers opposed the introduction of sales tax. They believe that it will place an additional burden on bona fide players, while most market participants already use tax avoidance schemes.

The Association of Internet Commerce Companies (AKIT) sent a letter to the President of the Russian Federation, Vladimir Putin, in which he spoke out against raising the tax burden.

The introduction of the sales tax will primarily "affect the legal segment of the Internet business market, operating in retail, since unscrupulous small players will evade the tax," says AKIT. The association estimates that the share of online retailers currently using illegal tax optimization schemes is over 60%.

Law-abiding companies will also be pushed into the "gray" zone, as a sales tax of 3% will double the tax burden on market participants. "Thus, the introduction of the sales tax will not ensure an increase in the revenues of the state budget. On the contrary, this, due to the reduction of the tax base, will help to reduce tax collections," the message says.

The Ministry of Finance has developed a bill providing for the introduction of sales tax from 1 January 2015 year. The tax base is defined as the value of goods or services sold, including VAT and excise taxes. The tax rate will be set by the constituent entities of the Russian Federation within 3%.

Major Russian online retailers opposed the introduction of sales tax.

Latest News

Golden Goose acquires its main sneaker supplier

On Wednesday, Golden Goose, known for its Superstar sneakers, announced the acquisition of Italian Fashion Team, the main supplier and manufacturer of luxury sneaker brand Golden Goose. The amount of the deal was not disclosed...
06.10.2022 139

Kari adds new product categories to the range of family hypermarkets

Russian shoe retailer Kari continues to experiment with retail formats and assortment. This summer, the three well-established formats of Kari shoe retail - Kari shoe stores, Kari Kids for children and Kari Hyper hypermarkets - ...
06.10.2022 138

Bikkembergs released a collection of his own hits from 1990 and 2000.

Antwerp-born fashion brand Bikkembergs has launched an archival project, a collection of fifty-three items from the past. “These are things that don’t need to be updated to make people like them, they just need to be redone…
05.10.2022 154

JamilCo to add three Turkish brands to its portfolio

JamilCo, one of the largest Russian distributors in the fashion segment, whose portfolio includes such brands as Timberland, New Balance, DKNY, Escada and others, is going to introduce three new Turkish brands to the Russian market –…
05.10.2022 340

New Balance and Aimé Leon Dore launch 650R in new colorways

New Balance's iconic collaboration with young New York-based streetwear menswear brand Aimé Leon Dore continues. Brands have decided to release the classic silhouette of the 650R sneaker in new colorways.
04.10.2022 301
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning