The reduction in the tax burden will let reinvest in renewal and modernization of fixed assets
Saint-Petersburg Governor has signed a law providing for new measures to support certain sectors of economy. In particular, it foresees tax deduction for corporate income tax for companies involved in transport processing of cargo. That will reduce the tax burden and will let renew and upgrade the companies’ fixed assets as well as replenish their working capital, says press center of the municipal government in its Telegram channel.
Amendments are to be introduced into certain municipal laws aimed at tax incentives.
According to the explanatory note to the draft law, Saint-Petersburg, as a border region of the Baltic Sea, features “an unstable situation in the maritime freight segment with the disruption logistics chains and the change in supply routes”. Reorientation of the industry from containers to other types of transportation requires significant investments in port infrastructure and ships. The introduction of a “tax cash back” for companies engaged in cargo handling will let stevedores reinvest in the renewal and modernization of fixed assets, as well as replenish their working capital.
In 2022, throughput of Great Port of Saint-Petersburg fell by 37.5%, year-on-year, to 38.8 million tonnes. Total throughput of seaports in the Baltic Sea basin fell by 2.9% to 245.5 million tonnes including 96.9 million tonnes of dry bulk cargo (-18.1%) and 148.6 million tonnes of liquid bulk cargo (+10.4%).