Clarification of the target purpose of the fee for improvement

The Committee on Economic Policy, Budget and Finance reviewed in the first reading the law-in-draft on amendments to the law "On the Fundamentals of the Tax System in the PMR", which specifies the target purpose of the fee from citizens for the improvement of the city (village, town).

The targeted fee from citizens for the improvement of the city was introduced for city residents in 2023, villagers have been paying it since 2013. Its amount is 10 minimum wages or 145 rubles.

The funds received from the targeted fee for improvement are directed to the improvement of the territory of the corresponding city, village, town. It was established at the same time that the funds received are directed to the improvement of the territory of the relevant city, village, settlement in the amount of funds approved by the city (district) Council of People's Deputies for the next financial year. The cost estimates at the same time within the approved amount of funds in relation to villages, settlements are subject to approval by the relevant village, settlement Council of People's Deputies, and in relation to cities – by the city (district) Council of People's Deputies.

Thus, funds from the payment of the fee from citizens for improvement can be directed to activities that are reflected in the estimates reviewed and approved by the relevant Councils of People's Deputies, without limiting what specific actions related to improvement can be assumed. This led to differences in the approaches of districts and cities to the use of funds from the targeted collection in practice, according to the relevant parliamentary Committee. The law-in-draft proposes to supplement Article 16 of the Law "On the Fundamentals of the Tax System in the PMR" with a proposal that activities aimed at maintaining local government bodies and state administrations are not subject to inclusion in the estimate of expenses for the improvement of the territory of the relevant city, village, or town. The Committee proposes to adopt the law-in-draft in the first reading of the PMR Supreme Council plenary session.