Izvestia: “State benefits to promote innovation”
In 2011, the government will raise taxes; however, it is ready to offer tangible benefits to innovative companies and to some medical, educational, and scientific institutions. After making a statement to this effect at yesterday's cabinet meeting. Russian Prime Minister Vladimir Putin instructed Finance Minister Alexei Kudrin to prepare the necessary amendments to the Tax Code.
However, businesses must accept these handouts in good faith and with full knowledge of how much they cost in consideration of the current budget deficit.
A rise in taxes is inevitable, but it should be a gradual rise. The government will have to look for resources in order to facilitate it, Mr Putin said in Novo-Ogaryovo yesterday.
In 2010, the uniform rate of insurance contributions for medical, social, and pension insurance, which replaced the unified social tax starting this year, will be maintained at 26%. In 2011, the rate will be increased. By how much? The draft guidelines of Russian tax policy for 2011 say that it will be raised to 32% beginning that year. Earlier, the government planned to increase it to 34%, but then decided the measure was inexpedient: a reform of mandatory medical insurance (which, by the way, requires tangible expenditure) had not yet been prepared.
The tax burden on innovative companies will not be increased at all, for even a slight increase may be critically detrimental to their business, Mr Putin said. Therefore, the rate of insurance contributions for such companies will remain at its present level of 14%. However, the prime minister asked the government "to take a second look" at the list of sectors to be entitled to these benefits. The government must first ascertain which of these companies really produce unique products and must be supported. It must also support companies introducing energy-efficient equipment. The prime minister proposed that such companies be exempt from asset tax for three years. Educational, scientific, cultural, and medical institutions will also have their share of the pie: they may be exempt from tax on profits for at least eight years, the prime minister said, adding that this measure "will expand their potentialities."
In the future, such organisations will be offered a share of the budget. This will stimulate competition for the right to render certain services, Mr Putin said.
Addressing his cabinet members, the prime minister called on them to move cautiously, verifying each step of the way. Of particular concern is the efficiency of the tax collection system and of the benefits as such.
"I would ask the Finance Ministry to prepare and make the respective amendments [to the Tax Code]," Mr Putin concluded, addressing Finance Minister Alexei Kudrin.
By Pavel Arabov
