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Govʼt submits bill on preferential VAT rate for ʼrust beltʼ homes

The government submitted a bill to Parliament late Tuesday that would lower the VAT rate on home construction in "rust belt" areas to 5% from 27%, according to a report by state news wire MTI.

The government announced plans to roll out the measure in mid-April, among other policies to ease the economic fallout from the coronavirus pandemic.

The bill would apply the preferential VAT rate to homes with a usable area up to 150 sqm in multi-home residences built in "rust belt action areas".

Rust belt action areas are to be designated by government decree at brownfield sites deemed suitable for the construction of homes.