Russia leather industry first half margins

Russia's State Statistics Committee reports that leather industry companies in Russia recorded an average sales margin of 4%, and an average return on assets of 1%, in the first half of this year. In comparison, the average first-half sales margin and return on assets in Russia were 14.6% and 3.3% respectively. The Russian Prime Minister, Mikhail Fradkov, has ordered the Finance Ministry and Economic Development and Trade Ministry to draft proposals on reducing value added tax (VAT) in Russia from 18% to 13% from the start of 2007, according to the RIA Novosti news agency. The government said that lower VAT should help to boost economic growth and industrial output because of higher consumer demand.