Finance Ministry wants tax preferences for high-speed railways

MOSCOW, Jun 21 (PRIME) -- Russia’s Finance Ministry has developed a bill on tax incentives for development of high-speed railway infrastructure, and including zero value-added tax (VAT) for transportation of passengers and baggage via the railway from January 1, 2025 through January 1, 2060, according to the bill published on Friday.

Besides passenger and baggage transportation, the zero VAT rate should also be applied to

renting and utilization of high-speed railway infrastructure. The ministry also proposes a zero property tax for infrastructure of high-speed railways until 2060.

Russia has no high-speed railways and the Moscow–Kazan railway was to become Russia’s first. Russian Railways has been working on it for several years, but President Vladimir Putin approved development of the Moscow–St. Petersburg railway in April as a more practical project.

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