So as not to burst

Dmitry Kozak is against expanding the functions of the Ministry of Regional Development

"Fine". Obviously, this was the best assessment that the Ministry of Regional Development could count on yesterday when reporting for its actions in 2007 and early 2008 to the Cabinet of Ministers. The ministry, which with the arrival of Dmitry Kozak acquired unprecedentedly broad functions, in general, is still living in advance, thanks to the personality of its current leader. But everything ends someday. And advances for past merits too. Therefore, Mr. Kozak, one of the most venerable politicians of Vladimir Putin’s time, is ready to introduce himself to the public as almost a novice leader.

“I’m still a very young minister,” he said, almost embarrassed, to the “elderly” - thirty- and forty-year-old journalists who were trying to find out what exactly the Ministry of Regional Development was ready to do for citizens. Again, the immensity of the ministry’s functions made it possible to ask Mr. Kozak any questions - from the harmonization of national relations, housing and communal services reform, housing comfort, inventory of all federal lands and the construction of Olympic facilities to regional policy, interbudgetary relations and tax reform. True, the minister persistently asked the correspondents not to do what should not be done, namely: not to try to quarrel the Ministry of Regional Development with other departments whose powers it allegedly encroaches on - the Ministry of Finance and the Ministry of Economic Development and Trade. “If the Ministry of Regional Development takes on any more functions, it will burst,” Mr. Kozak explained his thought. And he added that “we have established interaction” with the above-mentioned departments: “We stand on the same ideological positions.”

Nevertheless, ideological differences emerged. Mr. Kozak, despite the statement that tax policy is the exclusive prerogative of the Ministry of Finance, noted that it is also an element of regional policy. And he admitted that “with the Ministry of Finance or with its part” the Ministry of Regional Development has significant differences regarding the procedure for collecting taxes from individuals. Mr. Kozak insists that citizens pay taxes exclusively at their place of residence. “The discussion on this topic continues,” he noted. - But I believe that before 2011 it is necessary to switch to this tax payment procedure. In the end, this is not a question of rates, but of technology. It is important not to debate endlessly. This year we need to put an end to it.”

The minister complained that interdepartmental approvals take a lot of time, but made it clear that he was ready to put up with such an approach. But he refused to explain the mechanism of how exactly the income tax will be collected at home. He just said: “This is not in my competence.”

The minister also spoke about the property tax, which should combine property tax and land tax, without much inspiration. True, he especially emphasized that citizens will not have to fork out additional cash. Because the possible innovation will primarily affect federal property. “Our main goal here is to register all state property. And there will be no additional costs for citizens,” Mr. Kozak assured. He promised that, in principle, now we are talking about pennies - it is important to first take an inventory and register everyone. What will happen next is anyone's guess, as is the case with homeowners' associations (HOAs). At first, the state invited residents of apartment buildings to take over their homes and maintain them themselves. A little later, various by-laws appeared that turned a voluntary matter into a voluntary-compulsory one. Later, the Ministry of Finance issued an order in which voluntary donations from citizens for the maintenance of houses are subject to income tax, despite the fact that the legal form of existence of the HOA is a non-profit partnership. And yesterday, Mr. Kozak publicly stated that he and the Ministry of Finance “have a common position - HOAs should not be subject to income tax.” Nevertheless, the order of the Ministry of Finance dated February 26, 2007 No. 03-07-15/24 on the collection of income tax and VAT in the mailing list to all HOA accountants remains a fact. It is also a fact that the Moscow government has not registered a single plot of land for apartment buildings, contrary to the Housing Code. “We will deal with this,” Mr. Kozak promised reporters yesterday after a government meeting. “It’s good that you signaled.”

Vera KUZNETSOVA