The Russian State Duma has approved a bill to abolish value added tax (VAT) and halve insurance contributions for catering enterprises.

Since 2022, catering companies whose revenues do not exceed 2 billion rubles, and the number of staff is less than 1.5 thousand people will be exempt from VAT and will be able to apply a halved rate of insurance premiums of 15% (instead of 30%) on payments above the minimum wage.

The government expects that the adopted amendments will help to "whitewash" the catering industry, in particular - to increase taxable income and employment rates.