State Duma deputy Andrei Andreichenko has submitted a draft law that relieves the residents of the Far East of paying VAT, income tax and other taxes.
There are eight federal taxes in Russia. The deputy suggests that the residents of the Far East should be relieved of paying all of them, the Parlamentskaya Gazeta newspaper reports. This is a desperate measure as more people are leaving the region. The deputy believes that the law will encourage Russians to relocate to the Far East. Many will want to open a business there, which would benefit the region’s economy.
Andrei Andreichenko emphasized that foreign citizens will not be relieved of paying taxes. He also added that 5% of the country’s population lives in the Far East, so the federal budget will not be affected much by the new law.