Pro-shipbuilding bill expects third reading
A third reading in the State Duma of the bill supporting the Russian shipbuilding and shipping industry is slated for October 21, 2011, a Transport Ministry official said.
Deputy Minister of Transport and one of the drafters Viktor Olersky says: "If the text of the document will be finalized stylistically and linguistically in the next two days, its third reading in the Duma can be held on October 21st. In another case, but this is unlikely, the deputies will read it on November 1st." The official added that the bill will be given final approval very soon.
"Hopefully, the members of the Federation Council will support this important comprehensive document for the industry, as the State Duma members have done," PortNews quoted Mr. Olersky as saying.
The draft law was approved in the second reading by the Russian State Duma on October 18, 2011 (Bill № 555755-5 «On Amendments to Certain Legislative Acts of the Russian Federation in connection with the implementation of measures to support the Russian shipbuilding and shipping").
The bill was prepared by the Ministry of Transport of the Russian Federation, Russian Ministry of Industry and Trade in conjunction with JSC United Shipbuilding Corporation (USC). The bill, in particular, provides for the reduction of operating costs of shipowners whose vessels will operate under the Russian flag, through tax breakes. In addition, the bill includes establishment of specialized shipbuilding areas with preferential tax treatment. Shipyards that fall under the new law, will receive exemptions on customs duties on imported foreign equipment, which has no analogues in Russia (duty is 10%), a zero rate of VAT on new vessels (18%) and a number of other benefits. It is assumed that the law will be applied to the vessels built from January 1st, 2010 at Russian shipyards and flying Russian flag.
The bill is believed to encourage domestic shipping companies to upgrade their fleet and placing newbuilds orders at Russian shipyards. The document makes amendments to the Code of Inland Water Transport (IWTC) and the Code of Merchant Shipping (CMS), tax and labor codes of Russia, as well as to four federal laws.