Russian info authority worried about tax benefits for local IT cos

MOSCOW, Mar 10 (PRIME) -- An information policy committee at Russia’s State Duma, the parliament’s lower house, is worried about the government’s proposal to exclude tax benefits for domestic Internet firms by the second reading of the bill seeking to impose the value-added tax (VAT) on online activities, the committee’s head Leonid Levin said Thursday.

The bill is aimed at improving the system of taxes on online sales of rights of access to databases, software, movies, games and other content by foreign companies to Russian consumers.

“The government’s opinion is to abolish tax benefits for Russian companies. It’s an alarm signal for us, which is worrying not only the industry, but also our committee. We will continue cooperating with the government, the budget committee so that interests of the industry would not be belittled, “Levin told reporters.

Representatives of the Internet industry “have different understandings of how the bill should be further developed,” he said.

“Some of them support the bill as is, some of them say it needs deliberating, and some demand abolition of tax allowances,” Levin said, adding that he offered companies to prepare their own opinion on the matter.

The bill stipulates the order of payment of the VAT on electronic services provided via the Internet, including foreign individuals and companies.

To become law the bill must be approved in two more readings by the State Duma and in one reading by the Federation Council, the parliament’s upper house, and signed by the president.

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