PM says govt can introduce free customs zone on Kuril Islands

KITOVY SETTLEMENT, Kuril Island of Iturup, Jul 26 (PRIME) -- The government is discussing introduction of the free customs territory regime on Russia’s easternmost Kuril Islands, Prime Minister Mikhail Mishustin said on July 26 during his visit to the region.

“Of course, significant benefits are necessary here so that people, who work here, do not waste their time on filling in documents and so that their tax burden… was quite unique. We are discussing first of all the possibility of introducing the free customs territory regime for this place,” he said.

Entrepreneurs, working on the islands and investing in the local economy, excluding financial services and production of alcohol, can be set free from taxes, including value-added tax (VAT), the corporate profit tax, the property tax, the land tax and the transport tax, Mishustin also said, adding that the plan does not apply to the income tax for individuals.

He added that low rates for payments to the compulsory social and pension system should persist in the region.

The prime minister also said that such a special economic regime could be interesting for foreign investors, including Japan.

Mishustin said that he will discuss the measures with President Vladimir Putin as soon as he returns to Moscow.

End