Vologda business opposed the initiative of the Communist Party of the Russian Federation to abolish tax benefits

Small, medium and large business of the Vologda region spoke out against the initiative of the Communist Party faction in the Legislative Assembly of the region regarding the abolition of tax incentives for investors.

The business community of the region voiced its opinion on this issue at a meeting of the inter-factional working group in the regional parliament. It was attended by deputies of the ZSO - representatives of the factions "United Russia", the Communist Party of the Russian Federation and the Liberal Democratic Party, members of the Regional Government, entrepreneurs and social activists.

The proposal to consider the issue of changing the laws "On corporate income tax to be credited to the budget of the Vologda region" and "On corporate property tax" in terms of abolishing benefits for investors was made during a speech by a representative of the Communist Party faction during the 53rd session of the ZSO on November 25 ... It was also proposed to create an inter-factional working group to discuss this issue.

“First of all, I would like to dwell on our main law, which gives privileges to certain groups of business on income tax. It turns out that at the moment this law in terms of investment projects only works for three enterprises: LLC Sokol Sielti, PJSC Severstal and JSC Apatit. Our proposal is to exclude from this law the articles that relate to the provision of benefits to these enterprises, "said the head of the Communist Party faction Alexander Morozov.

The Law "On Tax on Profits of Organizations Submitted to the Budget of the Vologda Oblast" regulates the provision of tax preferences in exchange for investments not for specific enterprises, but for everyone who wants to invest in the development of production in the region: be it metallurgy, chemistry, glass, textile or any other industry. And these are jobs, taxes, infrastructure development.

According to Valentina Artamonova, head of the Vologda Oblast Finance Department, when granting any tax benefit, first of all, its effectiveness is calculated.

“We have analyzed how much tax benefits are provided under the concluded investment agreements and what volumes of tax revenues we have. Since 2018, 14 billion rubles of tax incentives have been granted. At the same time, the volume of tax revenues amounted to 142 billion rubles, that is, it exceeds the amount of the tax benefit by 10 times. Benefits are used so effectively that for all periods tax revenues were higher than provided for by agreements, ”the chief financier of the region emphasized.

Over the past three years, investment projects have created more than 1,500 highly productive jobs. This is not counting employees of small and medium-sized businesses that work in partnership with investors.

“High investment activity also increases the volume of purchased services and goods from enterprises and organizations in the Vologda Oblast. It is measured in billions of rubles - all this is the income of our small and medium-sized businesses, - said the President of the Union of Industrialists and Entrepreneurs of the Vologda Region Sergey Dobrodey. - The second point - the same Severstal currently has new investment projects, and they are being considered in two versions: construction in Cherepovets or in other regions. Therefore, in my opinion, a sharp change in investment tax legislation is unacceptable. "

Also, the current norms helped the largest employers in the region to maintain production volumes and prevent staff and wage reductions amid the growing crisis due to the pandemic. Moreover, the leading enterprises of the Vologda Oblast provided great assistance to the health care system at the beginning of the quarantine: they purchased personal protective equipment, disinfectants and ventilators for medical institutions.

According to Oksana Yakovleva, Deputy General Director of Vologda Timber Industry Group of Companies, the company has already twice been able to take advantage of the opportunity to receive tax incentives: for large projects in Vytegra and Kharovsk. The total investment exceeded two billion rubles.

“I absolutely agree that no investors should be singled out. You are proposing to adopt a rule that we do not invite large players to our region. And for them, two components are important: benefits and infrastructure. The main mission of investment measures is incentive. to create conditions for investment activity or its continuation. There are not so many really large players ready to enter the Vologda Oblast. And if there is such a chance, it should be used, - said Oksana Yakovleva. - In addition, representatives of the Communist Party faction argue that it is necessary to exclude some articles, because there are no recipients of benefits. But this does not mean that the measures do not work. This only suggests that no one has yet applied for these benefits. And in this vein we need to work - to develop legislation so that there are those who want to invest. "

According to the press service of the regional parliament, business representatives noted that the abolition of tax incentives is a short-term gain. The budget can be replenished with additional funds only for one year. However, after that, tax revenues will inevitably decrease. And not only from the largest enterprises, but also from other taxpayers.

“Any positive changes that relate to the economic situation of business entities can be introduced immediately. And the norms that are aimed at worsening the economic situation of enterprises - at least several years before the start of their application. It is ineffective and wrong to change the rules in the middle of the game, ”says Alexei Logantsov, chairman of the regional office of Opora Rossii.

“You can now start changing something, but I assure you that investors will start looking aside. The terms of movement of large capital objects have now been greatly reduced. The Communist Party faction, what will you do when the investor leaves and the budget collapses twice? " - Alexander Khaichenko, General Director of Vologda Ice Cream LLC, supported his colleague.

According to the speaker of the regional parliament, head of the United Russia faction Andrei Lutsenko, investments play an important role in the development of the region.

“It is very important for us that business representatives took part in the discussion, expressed their point of view on the current investment legislation. Every year when the budget is adopted, we hear the same rhetoric from the deputies of the Communist Party faction - take away, divide. If you try to swing this topic every year in the fall, then this does not affect investment stability in any way. It is possible that the legislation is imperfect and requires adjustment. But this approach - the abolition of tax incentives - clearly contradicts the current legislation. The Communist Party faction has the right to initiate legislation. Implement it: develop proposals, discuss with the Government, the deputy corps, go through all the procedures, introduce a bill. We must act within the legal framework. No emotion or politics. Our task is to create all conditions for the development of the economic potential of the region, and not create additional difficulties for business, ”summed up Andrey Lutsenko.

Source: http://vologdaregion.ru/