the Russian Government has planned from 2021 to return the value added tax (VAT) on the sale of the software. This measure will be combined with a reduction in taxes for the whole industry, which previously said the President of the country Vladimir Putin. This is with reference to the proposals of the Ministry of communications writes “Kommersant”.
market Participants expect that the decision will lead to higher prices on foreign BY more than 16 percent, and for the Russian market it will actually cancel the proposed support measures. The Ministry calculated that the additional charges after the refund of VAT in the first year will bring an income of 42.5 billion rubles.
the Benefits will be granted only to the company whose software is included in the national registry. They can provide subsidies to 11.4 billion rubles. Thus, experts say, the proposed scheme is protectionist in nature.
the appeal on June 23, Putin said that the IT industry will permanently reduce the rate of insurance premiums from 14 to 7.6 percent, and profit tax — 20 percent to 3 percent. Then the President stressed that this is one of the lowest tax rates in the world.
In a press-service of the government and the Ministry of communications has not commented on the initiative on VAT on the merits, noting only that in the course of the discussion were worked out different reform options.
Deputy Chairman of the Committee of the Russian Union of Industrialists and entrepreneurs Anatoly Semenov pointed out that if VAT is 20 percent return, then the support of the Russian companies in fact passed on to buyers of foreign software, which will have to pay more. The expert did not rule out that against the ideas will speak the world trade organization (WTO), because it’s like prohibited discrimination on a national basis.
Other experts fear a loss of competitiveness for companies in crisis, because these measures of support will be offset by the rejection of the previous one.
