Russia has reduced the gold tax in order to entice savers to sell their dollars. On Wednesday, Russian President Vladimir Putin signed a law exempting individuals from paying Value added Tax (VAT) on gold purchases.
According to Russian Times, the proposal is intended to help Russian people who want to invest their rubles, which have been declining in value due to Western sanctions.
Moscow has placed limitations on the purchase of certain foreign currencies, such as the US dollar and the euro, which were once a popular means for Russians to secure their investments. The document was published on the state's legal information portal. The Russian Tax Code has also been updated to reflect these changes. The new law is retroactive, meaning it applies to purchases made after March 1st.
Previously, Russians had to pay 20% of the transaction price in VAT when purchasing actual gold. The VAT paid was not recovered when the precious metal was sold back to the bank.
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