Foreigners Bought Goods Worth $720 Mln In Russia Since Tax Free Launch In April - Ministry

Foreigners Bought Goods Worth $720 Mln in Russia Since Tax Free Launch in April - Ministry

Foreigners in Russia got 47,000 refund checks worth 4.7 billion rubles ($720 million) for good purchased within the framework of the tax free system launched in Russia in April, Russian Industry and Trade Minister Denis Manturov said on Friday.

MOSCOW (UrduPoint News / Sputnik - 28th September, 2018) Foreigners in Russia got 47,000 refund checks worth 4.7 billion rubles ($720 million) for good purchased within the framework of the tax free system launched in Russia in April, Russian Industry and Trade Minister Denis Manturov said on Friday.

"Retail is extremely interested in the tax free [system]. As of today, nearly 300 shops are participating in the project, with 47,000 refund checks worth 4.7 billion rubles having been processed over the first five months of its implementation. Meanwhile, the average check amount totaled 100,000 rubles. The introduction of tax free [transactions] has resulted in a significant increase in trade, and the project will be steadily expanded," Manturov said, as quoted by the ministry's press service.

According to the ministry, between April and May, trade using the tax free mechanism saw almost no change, but since June, there has been a fivefold increase.

"It may seem that such a sharp increase is only explained by [Russia hosting] the FIFA World Cup, but I would like to note that the World Cup guests accounted only for 30 percent. The main effect was caused by the growth in the number of stores participating in the project and foreigners' rising awareness of the tax free project in Russia," Manturov explained.

The tax free system, which returns the cost of the value-added tax on goods bought in Russia, was launched as a trial in the Russian cities of Moscow, Krasnogorsk (the Moscow Region), Sochi and St. Petersburg on April 10. A number of Russian cities that hosted the 2018 FIFA World Cup have joined the project since then.

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