New industrial enterprises will be provided tax incentives and affordable loans - Ministry of Industry RF

At present a development of a new law on industrial policy providing tax incentives for new businesses is being conducted. This was informed by the Acting Director of the Department of Chemical Technology and Timber Industry of the Ministry of Industry RF Vladimir Potapkin at the IV International Forum "Big Chemistry" in Ufa.

According to him, it is assumed "zeroing the federal part of the income tax". In addition, the subjects of the Russian Federation will be able to reduce the income tax in the part to be transferred to the regional budget. It is also assumed "not to levy a property tax".

Vladimir Potapkin also informed about the planned signing of an agreement between the Ministry of Industry of the Russian Federation and a pool of seven banks in the sphere of loans granting to industrial enterprises. Thus "the state is ready to provide guarantees and support of the projects," and create "more favourable conditions for business development".

“Total import substitution is not possible in our country”, the head of the department of the Ministry of Industry noted. “It is not required. We will construct a balanced model where a proportion between imports and domestic production will be maintained so as to ensure national security and independence from foreign partners’ sentiment.”

Following discussions at the "Big chemistry" a road map on import substitution should be developed. The road map items "are supposed to be included in the activity plan, which is formed by the Ministry of Industry and the Ministry of Energy on behalf of the Government of the Russian Federation". In the second half of 2014 it is expected to consider the plan at a session of the Russian Government.