Press release, 24.10.2017

On October 23, 2017, the Novgorod branch of the Yabloko party issued a statement expressing its concern about the plans of the regional government to abolish tax benefits and curb the institute of public hearings of the budget.

The Novgorod Regional Duma should consider bills significantly changing the budget and tax policies in the region. The adoption of the bills is scheduled on 25 October, 2017. The Novgorod branch of Yabloko considers the initiatives of the regional government as undeveloped, noting that “their adoption will have a negative impact on democratic institutions, the conditions for doing business, and the situation in the social sphere”.

The government of the Novgorod region proposes to hold extramural public hearings of the budget, by means of questions and answers on the Internet. “Yabloko categorically does not agree with the transfer of open hearings of the Novgorod region budget into the format of questions and answers on the Internet. We are in favour of a direct public dialogue between the authorities and civil society, free exchange of views on an open ground, taking public interests in the account in the formation of the regional budget. Extramural public hearings are a profanation, one more step to ruining of trust between the authorities and citizens,” Yabloko stresses.

The Novgorod branch of Yabloko also expresses deep concern about the abolition of tax benefits for organisations registered in the depressed areas of the Novgorod region, agricultural producers, consumer cooperative organizations, bus transport organisations, public health, physical education and sports institutions, charitable foundations, and organisations allotting part of the profit for charitable purposes. “The government claims that these benefits are inefficient, but does not provide any justification for such a point of view,” the statement runs. Yabloko activists also note that there was no information on the assessment of the regulatory impact of these bills, the results of public expertise, public consultations with representatives of the business community, NGOs and budgetary organisations that could help to identify the positions of the parties concerned. Examination of the bill on the abolition from 2018 of state support for organisations conducting business in five depressed areas of the region, revealed the risks of deteriorating the financial and economic situation of entrepreneurs in the Batetsk and Parfinsky districts. Nevertheless, the government of the Novgorod region, did not take these risks into account.

Yabloko notes that the package of “tax bills” was poorly worked out, it does not contain economic justifications, analysis of the consequences for businesses, budget organisations and NGOs. “We believe that the adoption of bills will have a negative impact on the development of the economy in certain sectors and the situation in the social sector”.

The Novgorod branch of the Yabloko party calls on the deputies of the regional Duma to reject the package of budget and tax bills and send them to the government of the Novgorod Region for revision.

“We propose to the government of the Novgorod region to adopt a rule of broad public discussion of bills affecting the interests of citizens, entrepreneurs, NGOs prior to their submission to the Novgorod Regional Duma,” the statement runs.