OREANDA-NEWS In Russia, it was proposed to exempt from paying value added tax (VAT) products that are given to charity. The corresponding proposal was sent to the government by the head of the State Duma Committee on Youth Policy Artyom Metelev, the Vedomosti newspaper reports.

According to the deputy, amendments to the Tax Code should stimulate food-sharing programs in Russia. They will affect all types of products except excisable ones — vegetables, fruits, berries, bread, cereals, pasta, juices, baby food, water, tea and coffee. Goods should be transferred to non-profit organizations (NGOs) engaged in helping the population. The total cost of the transferred goods should not exceed one percent of the turnover of this category of goods from the company. Confirmation of the right to VAT exemption will be an agreement or contract for the transfer of such goods and an appropriate act.

"Some people don't have enough money for food. That's why we are proposing a law to help those in need. Stores recycle goods on an industrial scale. They can destroy goods in New Year's boxes after the New Year has passed, or slightly beaten fruits, or goods whose shelf life is about to expire," explained the initiative of Metelev.

According to current regulations, it is more profitable for retailers to dispose of expired products than to give them to charity due to the need to pay VAT of 20 percent. At the same time, they were previously required to pay income tax.