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Russia may gradually replace VAT by sales tax in 2009-2011

MOSCOW, June 12 (RIA Novosti) - Russia's value-added tax may be gradually replaced by the sales tax in 2009-2011, a presidential adviser said Tuesday.

Arkady Dvorkovich, the head of the expert department with the Kremlin administration, said the move was related to the refund of the value-added tax on export operations, which involved a complicated procedure in comparison with the sales tax.

"We are becoming increasingly convinced that we need to withdraw from this tax [value-added tax] gradually in 2009-2011," Dvorkovich said.

Dvorkovich also said the gradual replacement of VAT with the sales tax would allow the government to make the transition without any significant budget losses.