Nabiullina allowed reducing the impact of VAT on prices due to tight monetary policy

The tight monetary policy of the Central Bank of the Russian Federation may reduce the transfer of VAT increases to prices. This was announced on December 19 by the head of the regulator, Elvira Nabiullina, during a press conference following a meeting of the Central Bank's board of directors.

"We believe that our tight monetary policy makes it possible to reduce the transfer of VAT increases to prices and reduces secondary effects. All this is holding back inflation," she said.

According to Nabiullina, the Central Bank will continue to assess the effect of the tax changes. In turn, Alexey Zabotkin, Deputy Chairman of the Central Bank, added that the VAT increase in the medium term, in his assessment, will be disinflationary in nature, as it will help balance the budget and prevent a higher deficit.

After the holidays: how the VAT increase will affect inflation

The Bank of Russia predicts the effect in January 2026

Earlier in the day, Russian President Vladimir Putin said that Russia's goal in the context of raising VAT was to achieve budget balance. According to him, it is necessary that when the tax is increased, this will result in revenue to the budget. The head of state also stressed that it is necessary to reduce the tax burden in the future.

On November 18, the head of the Duma's budget committee, Andrei Makarov, said that the main objective of the draft law on VAT changes is to find a balance between the interests of the state and society.

All important news is on the Izvestia channel in the MAX messenger.