The Industrial Sector Support

The deputies of the Supreme Council considered and adopted at once in two readings additions to the law "On tax on income of organizations". The law-in-draft was developed with the aim of creating favorable tax conditions for the development of industrial production in the republic. The document was presented to parliamentarians by Minister of Economic Development Sergei Obolonik. He noted in his report that at present, the sectoral tax burden on industrial enterprises based on the results of 2022 amounted to about 20%.

The legislative initiative of the Government is designed to create conditions for the release of funds from the enterprises of the industrial sector of the republic to increase the wages of their employees and exempt them from mandatory contributions to the Unified State Social Insurance Fund in the amount of 1.08% of the income received. According to the authors of the law-in-draft, this will stimulate the development of the industrial production sector, increase the number of people employed in the industrial sector, increase wages for employees of industrial enterprises, increase tax revenues by increasing industrial production and revenue from the sale of manufactured products and by increasing revenues from the so-called labor taxes – income tax, unified social tax and compulsory insurance premium.

Approximately from 26 to 30 million rubles will return to the republican budget this year in the form of so-called labor taxes, according to the estimates of the Ministry of Economic Development. The Government proposes to cover the rest at the expense of budgetary reserves.

The parliamentarians agreed with the proposals of the Government and voted for the adoption of the legislative initiative in two readings at once.

The entry into force of the norms of the law-in-draft is proposed from the 1st of July, 2023.