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Putin suggests tax incentive for new businesses in the Far East and the Baikal region

It should apply to industrial companies with the amount of investments of at least 500 million roubles

Photo ITAR-TASS

Photo ITAR-TASS

NOVO-OGARYOVO, November 29 (Itar-Tass) — President Vladimir Putin suggested setting the rate of the federal part of the profit tax at zero in the first decade of operation of new businesses, the so-called greenfields in the Far East and the Baikal region.

It should apply to industrial companies with the amount of investments of at least 500 million roubles, the head of state said at a meeting of the State Council presidium on Thursday.

"One might consider, and the government needs to work through the exemption of the mining tax for hard commercial minerals, provided the companies meet the same requirement, i.e. investments amounting to at least 500 million roubles.

The relevant decision has already been made for hydrocarbons, he reminded.

The president demands the revocation of licenses from the companies that fail to meet their commitments in mining projects.

"We have to see how conscientious they are in fulfilling the license agreement on launching deposits, and revoke the licenses of those who violate contractual obligations," he said.

In his opinion, the Fund for developing the Far East and the Baikal region must be worth 100 billion roubles.

"We've already decided to increase the authorized capital of the Fund in the amount of 15 billion roubles; we'll analyze its work; and if the Fund shows its effectiveness, we'll continue to replenish it, so that the capital is eventually worth 100 billion roubles," the head of state said.

The fund "supports investment projects on the condition of state-private partnership.

The president noted the special role of regional leaders in developing the Far East.

"The responsibly of regional leaders and regional management teams should increase many-field," he underlined, "in the period of sweeping changes, the highest requirements will be set for their work."

The government has to regularly analyze the effectiveness of the measures to develop the Far East. "The government should conduct this monitoring permanently," he stated.

"We have to get rid of the situation when a problem is solved inadmissibly slow while the allocated financial and material resources are eroded and the approved plans remain paperwork. We are certainly not satisfied with the rate and the quality of the development of far eastern territories and the standard of living. Our task is to reverse the situation and make the Baikal region and the Far East economic leaders," Putin said.

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