Russian Federation Council committee proposes wider 22% VAT list for delicacies

The Federation Council's budget committee proposed revising preferential tax treatment for seafood, premium cheeses and other delicacies. Its opinion on the three-year budget bill specifies a 22% VAT rate.

RIA Novosti reported on October 13 that the list includes oysters, lobsters, langoustines, scallops, cuttlefish, octopus, mussels, king and tiger prawns, and crayfish. The named cheeses are brie, gorgonzola and parmesan.

The committee also proposed including truffles, jamon, prosciutto, and goose and duck liver. A separate proposal would apply the 22% rate to palm-kernel oil and its fractions, following the treatment of palm oil.

The recommendations develop Valentina Matviyenko's October 5 initiative to remove relief for seafood delicacies. The Federation Council chair compared the preferential 10% rate with the general 22% rate and estimated potential revenue at around 6 billion rubles.

The committee's opinion contains recommendations for revising the budget. It does not itself amend the Tax Code or establish that the listed products have already moved to a different rate.