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Putin backs idea of software sales tax to support domestic developments

September 24, 2014, 16:04 UTC+3 MOSCOW
The proposal was made by Russian Communications Minister Nikolai Nikiforov who spoke about a special levy for the 10 most critical types of software
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Russian President Vladimir Putin (R) and Communications Minister Nikolai Nikiforov (L)

Russian President Vladimir Putin (R) and Communications Minister Nikolai Nikiforov (L)

© ITAR-TASS/Alexei Nikolsky

MOSCOW, September 24. /ITAR-TASS/. Russian President Vladimir Putin said on Wednesday he supported the idea of introducing a special levy on software sales to use the proceeds for financing domestic software developments.

The proposal was made by Russian Communications Minister Nikolai Nikiforov who spoke about a special levy for the 10 most critical types of software.

“We believe that a special levy can be introduced in the sphere of software in the current situation when a special discount exists today for the payment of VAT and software licenses are levied at a zero rate while three fourths of software are actually supplied from abroad,” the minister said.

The Russian communications minister said the software levy could amount to 5-10%, with the proceeds expected to go to a special fund for the development of the Russian software.

The Russian president said he liked this idea.

“I believe this is a good idea. I will certainly support it. We only need to work on this issue in the government and talk with colleagues in the Economic Development and Finance Ministries,” the head of the Russian state said.

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