First vice prime minister Sergey Ivanov believes that the governmental measures regarding the Russian ports can be deemed as de-stimulating.
“At the moment the state tax policy is not proving to be stimulating, it rather provokes the opposite effect. And I will try to demonstrate this fact by a very simple example,” -stated Ivanov, delivering his speech during joint session of the Committee of the City Council and Sea Board in Murmansk.
First vice Prime minister drew everybody’s attention to the Estonian port (Sillamae), located in the eastern Russian-speaking part of Estonia, about 10-20 miles from Russian port Ust-Luga.
“In the Port of Sillamae VAT amounts to 0%, property tax - 0%, profit tax - 0%”, customs duties - 0%. I note this for the economic bloc of our government. In Ust-Luga VAT amounts to 18%, property tax - 2,2%, profit tax - 24%, customs duties - 6,5%. There is no real competition to discuss”, - stated Ivanov.
Ivanov stated that according to the upcoming law on special economic zones in the ports the profit tax in Ust-Luga will amount to 15% (in comparison with the existing 24%).
The answer to the question whether we are trying to create equal or unequal conditions with our rivals is quite obvious, -stressed the first vice Prime minister.
“We shouldn’t take prohibitive measures or demand special conditions for the ports. Shippers should have a choice. But then there should be at least equal conditions in the ports, not special ones,”-stated Ivanov.
“At the moment the state tax policy is not proving to be stimulating, it rather provokes the opposite effect. And I will try to demonstrate this fact by a very simple example,” -stated Ivanov, delivering his speech during joint session of the Committee of the City Council and Sea Board in Murmansk.
First vice Prime minister drew everybody’s attention to the Estonian port (Sillamae), located in the eastern Russian-speaking part of Estonia, about 10-20 miles from Russian port Ust-Luga.
“In the Port of Sillamae VAT amounts to 0%, property tax - 0%, profit tax - 0%”, customs duties - 0%. I note this for the economic bloc of our government. In Ust-Luga VAT amounts to 18%, property tax - 2,2%, profit tax - 24%, customs duties - 6,5%. There is no real competition to discuss”, - stated Ivanov.
Ivanov stated that according to the upcoming law on special economic zones in the ports the profit tax in Ust-Luga will amount to 15% (in comparison with the existing 24%).
The answer to the question whether we are trying to create equal or unequal conditions with our rivals is quite obvious, -stressed the first vice Prime minister.
“We shouldn’t take prohibitive measures or demand special conditions for the ports. Shippers should have a choice. But then there should be at least equal conditions in the ports, not special ones,”-stated Ivanov.
