MOSCOW, February 3. /TASS/. Russian President Vladimir Putin has vowed to support domestic brands so they can maintain a competitive advantage over large international monopolists.
"I am your ardent supporter, and I believe that our domestic brands, of course, should not simply develop, but should have certain competitive advantages over large international companies, monopolists in fact, which obviously have advantages due to a whole number of circumstances," he said, addressing representatives of Delovaya Rossiya on Thursday. The country’s leadership has "tried to do it in the past as well," Putin noted. "But it is particularly relevant now, the more so because the bulk of domestic companies are ready for such competition, they should only be provided with an opportunity to do it honestly," the president emphasized.
He responded so to the speech by chief of the fast-food chain Teremok Mikhail Goncharov, who asked to request the government to work out a softer tax regime for the industry. "We assume that there is such a request for the government. I am asking colleagues to get back to it and take necessary decisions," the Russian leader vowed.
According to Goncharov, each year 32 mln pancakes are baked in Teremok, which has over 300 restaurants.
"This is our reply to McDonald’s and the Big Mac," the entrepreneur insisted. Russia’s local restaurant business is "ready to compete as equals with large American business, which feel great in Russia," he added. "In Japan out of ten largest companies only one is not Japanese, that is McDonald’s, whereas in Russia the top three are American companies, ahead of Russian competitors by five-to ten-fold," Goncharov explained, adding that there is a major obstacle for the development of domestic business related to taxation, which suggests a sharp increase in taxes once the company’s turnover exceeds 2 bln rubles ($26 mln). If a pattern of softer taxation is adopted, tax revenues of the budget will only rise if business develops successfully, he assured.
The issue of competitiveness of Russia’s business "is always the focus of the government, respective departments, with the dialogue between the Finance Ministry and the Economic Development Ministry constantly underway," Putin stressed. "We are aware of a reverse split of companies to avoid an upsurge in taxation," the head of the state admitted. "You are right," Putin said in support of Goncharov.
"Of course, we should rely on the Finance Ministry’s position, which is a sound position, however, it is still necessary to move towards the direction you noted," the president told the businessman. "We will do it," he promised.