Russia drops gold tax to encourage savers to dump dollars
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Russian President Vladimir Putin on Wednesday signed a law that exempts individuals from value added tax (VAT) on the purchase of gold.

The measure is meant to provide support to Russian citizens, looking to invest their rubles, which have been depreciating in value amid Western sanctions, RT reported.

Moscow has imposed restrictions on the purchase of some foreign currencies, including the US dollar and the euro, the common way for Russians to protect their savings in the past.

The document was published on the state portal for legal information. Corresponding amendments have also been made to the Russian Tax Code.

The new legislation is retroactive and applies to purchases made since March 1.

Previously, when buying physical gold, Russians had to pay 20 per cent from the purchase in VAT. When selling the precious metal back to the bank, the VAT paid was not returned.



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