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Preferential treatment on Kuril Islands to trigger economic growth there, says Deputy PM

Earlier, the Russian government passed a bill on the regulation of the activities of residents registered on the territory of the region

MOSCOW, December 9. /TASS/. The preferential treatment for businesses on Russia’s Kuril Islands will enable them to become an economic growth center, Prime Minister, Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev told a forum on Thursday.

"Brand-new, modern conditions will be in force in the Kuril Islands. We hope they will contribute to Russia’s development and make it possible to turn the Kuril Islands into one of [the country’s] economic growth centers," he said.

Earlier, the Russian government passed a bill on the regulation of the activities of residents registered on the territory of the Kuril Islands, and is to submit it to the lower house of parliament. The treatment of a free customs territory will be introduced on the Kuril Islands as VAT will not be charged on operations with goods supplied from third countries. That said, it is necessary to prevent the creation of a new offshore zone on the Kuril Islands, Russian Prime Minister Mikhail Mishustin noted, adding that preferential treatment will be provided only to companies that really work on the islands, that are not involved in the production and refining of hydrocarbons, the production of excised goods, catching of crabs, financial and intermediary services.

The draft legislation enables companies willing to start a business on the Kuril Islands to be fully exempt from almost all types of taxes for 20 years. The issue is about taxes on profits and property of organizations, as well as the land and transport tax. The insurance contribution tariffs will be substantially decreased.

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