Russia to scrap 20% VAT on precious metals

[mr-dead]

Russian President Vladimir Putin signed a law eliminating the value-added tax (VAT) on investments in gold and other precious metals.

The law makes banking operations involving precious metals (excluding coins), as well as investments into precious metals bank accounts, to be tax-free by eliminating the 20% VAT tax. The new law, however, does not mention anything about the 20% VAT on physical purchases of precious metals. 

Russian newspaper Izvestia estimates that in the next five years the demand for precious metals like gold and silver could surge up to 50 tonnes a year, which is an increase of 15 times from current levels.

“Investments in gold will become one of the main ways of accumulating funds in the state treasury since the metal is protected from the U.S. dollar inflation,” the newspaper wrote.

 

https://www.kitco.com/news/2019-08-22/Russia-s-President-Putin-Cancels-VAT-on-Gold-and-Other-Precious-Metals-Investments.html

[Gildeon]

Isn't it a little strange to exclude the physical bullion...? So they want the people's money in "pm accounts" but the banks keeping all the physical themselves. One of the main reasons that people hoard pm's is the lack of trust in governments or the banking system. And especially in Russia, if the government decides to change the terms in the future, what will happen? People protesting...? 🙄

[5huggy]

WELL good OLD UK is always behind the crowd of late - "BUT - we can LIVE in HOPE!"

if this happened to Silver the RM would get nailed with orders !

Seem's obvious to ME that - - - >>> 

 China =actively encouraging the "people" to get some pm, Turkey =same,  Russia doing this!

SOMETHING is "COMING!" IMHO

[UKStacker]

With my foil hat on.

Remove vat, people invest in PM backed accounts, then

"Investments in gold will become one of the main ways of accumulating funds in the state treasury".

The state treasury keeps them for mother Russia and thanks them for being patriotic.

[TonyS]

On 23/08/2019 at 14:31, 5huggy said:

"BUT - we can LIVE in HOPE!"

If you know Derbyshire. Live in Hope, die in Castleton.