"Tax Free" Comes to Russia - Moscow, St. Petersburg and Sochi Prepare 500 Shops
The tax free system will be launched in the main Russian tourist centers: Moscow, St. Petersburg, and Sochi. Within a few months, all the World Cup cities will follow their example. Experts believe that this will not only increase foreign tourists' interest for Russian resorts but will also have a positive impact on Russia's industry.
Vsevolod Smirnov found out how much it will cost to launch the system.
The Tax Free system that has gained fame worldwide is finally available in Russian stores, so far, only in the ones tourists hear often of, such as GUM and TsUM in Moscow, DLT in St. Petersburg, and Marine Station in Sochi. Now it is in test run, but after the testing is done, tax free cash registers can open in about 500 shops.
Victor Evtuhov, Deputy Minister of Trade and Industry: "The Ministry of Trade and Industry would like to finish tests within a year to be able to involve more and more shops in all federal subjects of Russia without any exceptions. I think it might be interesting for departments responsible for tourism development. According to Deloitte's estimates, all costs will be more than outweighed by in three years".
As for the costs, experts say that the system integration will require 200 million from the budget annually but the economic benefit will be forthcoming. Russia will profit due to the growth of demand, and increase domestic production volume is expected.
Tamara Archangelskaya, Head of Department, Deloitte: "Due to an increase in the amount of customs payments that will be paid by retail organizations for import and export of goods on the territory of Russia, due to job creation and to the development of related industries, such as HoReCa or custom souvenir production".
The tax free icon looks about the same all over the world, and very soon it will be seen in the windows of Russian shops. We expect increased proceeds thanks to bigger numbers of clients, as well as foreign tourist flow growth.
"Among foreign tourists, today the Chinese are the biggest group", we were told at one of Moscow's biggest shopping malls. They expect a rush of European customers in the nearest future.
Andreas Schmeider, TsUM Board Chairman: "Tax Free is a great opportunity for Moscow to become a tourist destination where besides cultural and historical heritage, shopping would be profitable. Tax Free makes it possible because right now Russian prices are at the same level as they are in Europe. With a Tax Free refund, they will be more attractive for tourists from China and other countries. They will become more favorable than in Europe".
In 2016 Russia joined top 10 most visited countries. But the tourists didn't spend much. Apart from being economically profitable, Tax Free forms a part of national reputation and image, which is usually taken into consideration when tourists choose a country to visit.
Vsevolod Smirnov, Margarita Bobrovskaya, Igor Belogurov and Alexandr Sidorov. Vesti