UPDATE: Putin spox: Kremlin to study business’ fears of higher fiscal burden

(rewrites story)

MOSCOW, Nov 20 (PRIME) -- The Kremlin will analyze a letter of business unions that fear a higher fiscal burden following the passage of a 2018–2020 budget bill in a second reading in parliament, President Vladimir Putin’s spokesman Dmitry Peskov told reporters on Monday.

Vedomosti business daily reported the Russian Union of Industrialists and Entrepreneurs, Delovaya Rossiya, Opora Rossii, and the Chamber of Commerce and Industry complained to that the government, which has included three new non-tax payments in the 2018–2020 budget draft, is failing to keep the promise not to increase the tax burden until the end of 2018 given by the president in 2014.

“It was sent last Friday, this is why I am unaware whether our administration has received it or not. Anyway, it will be considered,” Peskov said. “As for reaction to the letter, I would not like to say anything, and I want to reiterate that the letter has been sent recently.”

Alexander Kalinin, president of small and medium business support organization Opora Rossii, told PRIME that the new non-tax payments, which the government is to introduce in 2018, will add about 150 billion rubles to the tax burden reducing investment activity.

“We would like to attract attention of the president to the fact that the federal budget draft introduces a new utilization fee for facilities of heavy power engineering at a rate of 7%, and raises the fee for wheeled self-moving transportation means by 15% more. Moreover, it introduces customs duties for production of investment machine-tool building. In total, we’ve calculated that it adds about 60 billion rubles to the burden,” he said.

The government also plans to return property tax partially, which will also add 80 billion rubles to the additional burden. “So, we see that the burden grows by about 150 billion rubles, and it will fall on the shoulders of those who have bought or will buy equipment, I mean investors. This will lead to lower investment activity because equipment will become more expensive,” he said.

(59.6325 rubles – U.S. $1)

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