OREANDA-NEWS  In Russia, decided to support manufacturers of children's goods with the help of tax incentives. The corresponding bill in the State Duma may be adopted in the first reading on September 1, with reference to a source in the budget committee, the Izvestia newspaper reports.

Amendments to the Tax Code have already received a positive opinion of the Commission on legislative activity. They propose to expand the list of goods for children subject to reduced value added tax (VAT). For manufacturers of children's furniture, car seats, diapers and other goods, the tax rate will be reduced to ten percent. The corresponding bill was submitted to the State Duma in July 2023.

The government said that companies producing children's products need support to increase their competitiveness. Reducing the tax burden for them will help support demand, increase the growth rate of the market, help increase the share of Russian-made goods in the market and support families with children, the authors of the amendments noted in the explanatory note to the document.

Currently, the Tax Code provides for a reduced tax rate for knitted and sewing products, strollers, baby beds and mattresses, as well as toys and diapers. Other products are subject to VAT at 20 percent.

Earlier in Russia, a GOST for toys was created, which for the first time will define all types of these products. The document divides products into 48 types, for example, play sets, flying toys, balls and others. According to Antonina Tsitsulina, president of the Association of Enterprises of the Children's Goods Industry (AIDT), this will allow identifying products and excluding those who are looking for workarounds.