Russian business daily Vedomosti (News), citing unnamed federal officials, reported on Tuesday that the Ministry of Economic Development and the Ministry of Finance of Russia are considering the possibility of imposing restrictions on payments in cash as part of the fight against the shadow economy.
They are reportedly considering the possibility of restricting selling cars, apartments and luxuries in cash.
The ministries reportedly also plan to reduce the value added tax (VAT) for non-cash payments.
The ministries have not yet officially commented on an initiative to restrict cash payments, according to Vedomosti.
Over the first nine months of 2016, Russian nationals reportedly used plastic cards to pay for goods and services totally worth 8.7 trillion Russian rubles.
The share of cash in circulation reportedly amount to 9.0 percent of Russia’s gross domestic product (GDP).
