Why did russia take this decision?
The price of crude oil and the price of gold and silver have increased between russia and Ukraine. Now Russian President Vladimir Putin has announced the removal of Value Added Tax (VAT) on the purchase of gold to give preference to the yellow metal as a safe investment against the US dollar.
Gold will be cheaper
Removal of VAT will bring down the price of gold. Let us tell you that before buying gold in russia, 20 percent of the purchase price had to be paid as VAT. At the same time, when customers went to sell gold, they did not get the amount of VAT.
Why did russia take this decision?
Gold is considered a safe investment option. However, it also costs the customers a lot. The ruble in russia has fallen sharply against the US dollar. For this reason, russia has banned the purchase of some foreign currencies, including the US dollar, due to which there is a tendency for people to invest in the ruble.
Invest in dollars
In russia, people usually choose US dollars to invest. President Putin passed the order on Wednesday. According to this order, VAT on gold will be removed from march 1. It is being speculated that due to this, the interest of investors will be more in gold than in dollar.
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