PRESS: Russian connection operators want tax relief, data law delay

MOSCOW, Oct 5 (PRIME) -- A Russian digital economy working group comprising connection operators has suggested delaying the application of the data retention law and introducing tax allowances to stimulate investment activities, including 5G networks, business daily Kommersant reported on Thursday.

The group headed by state-controlled telecom operator Rostelecom drafted a package of activities for 2017–2020. The postponement of the data retention law is indicated as a measure to improve “the investment climate in the telecom sector.”

The law will oblige connection operators and Internet companies to store content of users’ messages, including texting, voice, and video, from July 1, 2018, for up to six months. Operators’ expenses on its fulfilment were earlier estimated at more than 17 trillion rubles.

The group offers to cut the corporate profit tax rate for operators to 12.5% from 20%, exempt them from tax on owning investment facilities, extend license validity periods, reduce contributions to the universal service fund and payments for 5G frequencies, cut customs duties for telecom equipment.

“The law has imposed obligations on operators over the recent years whose fulfilment involves heavy expenses. Naturally, such conditions require measures of economic and tax stimulation,” a spokesperson for mobile operator MegaFon told Kommersant.

Mobile operator VimpelCom welcomes such an approach to motivation and support of business.

(57.7832 rubles – U.S. $1)

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