Russian government suggests creating free economic zone in new regions
The Russian government has drawn a lawbill on establishing a free economic zone in (FEZ) in the new regions, the press service of the “United Russia” political party reported.
“The document sets the timeframe for FEZ operation from January 1, 2024 to 2050. The Territorial Development Fund will take on the functions of the FEZ managing company to solve problems in creating a positive investment climate and rebuilding the infrastructure,” the report said.
Chairman of the committee on economic policy under the State Duma lower house of the Russian parliament Maxim Topilin said that the document envisioned tax preferences such as zero rate for the profit tax.
“Four Russian regions can set a profit tax quota for their budgets, from 0 percent to 13 percent,” Topilin said. “Land and property tax incentives will be provided as well. The key measure is the insurance fee rate at 7.6 percent instead of 30 percent. There is also an opportunity to subsidize loans provided from the federal budget for investment projects.”
The Lugansk People’s Republic acceded to Russia on September 30, 2022, based on the results of the unification referendum. *i*v