News

2019 July 3 14:25

System of preferences for PDA and FPV residents to be revised and expanded

The system of preferences for residents of Priority Development Areas (PDA) and Free Port of Vladivostok (FPV) is to be revised and expanded, IAA PortNews correspondent cites Aleksandr Kozlov, Minister for the Development of the Russian Far East and Arctic, as saying at the meeting of the Ministry’s Board. 

According to him, the rate of profit tax for companies is to be set at 7% from the beginning of the project (it is currently set at 0% with an increase to 10% in five years). 

The Minister says that will let increase tax payments to regional budgets and make investment more stable.

The mechanism of energy tariff reduction is to be extended for industrial consumers till 2028 as well as subsidizing of bank guarantee interest rates for VAT recovery. 

A special discount to encourage investments in modernization of the existing facilities is under discussion.

The State Duma or Russia is currently considering a draft law on expansion of FPV regime to water surfaces for facilitation of NOVATEK’s project on creation of a transshipment terminal in Kamchatka.

Related link:

Ministry for the Development of the Russian Far East and Arctic: Arctic Development Strategy to be prepared by end of year>>>>