On February 27, 1999 the Government of the Russian Federation issued Decree No. 235 (published in "Rossiyskaya Gazeta" on March 4, 1999). According to the Decree, the additional 3% import duty introduced in August 1998, expired on February 28, 1999.

Russia's State Duma passed a law on March 3 in its second reading to lower value-added tax to 15% from 20% on July 1, 1999. Certain products will have a special VAT of 10%. The law envisions a VAT rate of 10% on all products in 2000.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)