[home page][map of the server][news of the server][forums][publications][hot issues]
Valery Leonov

Igor Artemyev compensates for dollars lost on oil deals with a single tax on concessions

Commersant, March 1, 2002

Yesterday in the Interfax office Deputy Chairman of the Duma Committee for Credit Institutions and Financial Markets, Igor Artemyev, tried to answer the question "How can we compensate for dollars lost after the fall in oil prices?".

Artemyev who in 1996 - 1999 was Deputy Governor of St. Petersburg, thinks a simplified tax system and the transfer of state property into concessions can compensate for the dollars lost on oil deals. The YABLOKO faction of the State Duma has just finished work on a concept for developing the small business sector and has submitted it to the executive authorities. This concept implies that a single tax amounting to 6% of proceeds will be introduced for small businesses (tfederal and regional budgets will receive 50% each).

The second method for increasing budget revenues is more debatable. This involves concessions, i.e. the transfer of state property to investors into long-term lease. According to Igor Artemyev, there are thousands of unitary enterprises in Russia. They hold on deposit 1 bln roubles annually, but only 500 million roubles are remitted as taxes to the state treasury. Artemyev wants to introduce a tender with stringent requirements for the right to manage this property. For example, the state leases a railway for 100 years, and the investor should build a new one within this period; control over investor's actions should be constant here. Consequently, according to the Duma deputy, the enterprises will be managed better, and the budget will receive the money and the state will not lose its property.

However, such a scheme looks somewhat utopian: another person's property still belongs to another person and consequently will be subject to worse treatment than one's own, even if this property is received under concession. Simple privatisation, an issue which is not favoured by YABLOKO, would be far more reliable here.

See also:
Concessions in Russia/General
Development of small-scale business

Alians Media. The YABLOKO party will submit to the President of the Russian Federation its concept of support for small businesses. March 7, 2002.

How to Manage State Property?
"Ekonomika Rossiyi. 21 vek" * No 1(6), March 2002.
(Grigory Yavlinsky, head of the YABLOKO faction of the State Duma of the Russian Federation)

Commersant, March 1, 2002

[home page][map of the server][news of the server][forums][publications][hot issues]