Sverdlovsk deputies did not allow the tax on shopping centers to be increased

Yesterday, the legislative assembly of the Sverdlovsk region considered amendments to the regional law on property tax. The draft law provided for the abolition of a number of tax benefits totaling more than 4 billion rubles, as well as the transfer of shopping and business centers to taxation based on the cadastral value of objects. The latest innovation did not suit a number of deputies: in their opinion, in the current economic situation it would simply “bring entrepreneurs to their knees.” As a result, there were not enough votes to pass the bill in the first reading; deputies will consider it again at the next meeting. Experts believe that the discussion of the bill demonstrates the presence of specific economic interests in the legislative assembly.

Deputy and businessman Lev Kovpak does not support increasing the tax burden on entrepreneurs
Photo: Vladislav Lonshakov, Kommersant

Changes to the law on property tax in the region were presented by Tatyana Gladkova, Deputy Minister of Economy of the Sverdlovsk Region. During the report, she explained that the amendments reduce the number of categories of organizations claiming the benefit: it will be abolished for municipal property, hotels and restaurants, airports and airfields and a number of other categories. According to her, the proposed changes will bring the regional budget more than 4 billion rubles, of which 3.2 billion rubles are lost revenues from the municipal property tax. “The changes reduce the amount of revenue lost by the region to 4%, which will allow the region to qualify for federal subsidies under the budget expenditure efficiency program,” added Ms. Gladkova. Another change concerned shopping and business centers: it is expected that from 2015 the property tax on objects with an area above 5 thousand square meters. meters will be calculated on the basis of their cadastral, rather than book value. In 2015, the tax should be 1.5% of the cost, in 2016 and subsequent years - 2%. “This will provide additional budget revenues of about 315 million rubles,” noted the Deputy Minister. These amendments are being introduced in connection with a change in federal legislation, which provides for the transfer of all shopping and business centers, regardless of area, to a new taxation system from 2018.

The speech of the Deputy Minister caused a heated discussion among the deputies. Most of all, they were outraged by the plans to transfer shopping centers to the tax base based on cadastral value. “Don’t you think we’re in too much of a hurry,” asked United Russia deputy Sergei Chepikov. — We have a gap until 2018, why do we want to strangle entrepreneurs today, in three readings at once? Shopping centers are now on their knees.” Deputy Anatoly Pavlov noted that contradictions constantly arise around the cadastral valuation of property, and therefore “the corruption component of the bill is very high.”

The head of the budget committee, Vladimir Tereshkov, stood up for the amendments. “From January 1, 2018, whether entrepreneurs like it or not, all shopping, business and exhibition centers will be taxed according to the cadastre. To get to this situation normally, you need to do some preparatory work. At the committee, we came to the conclusion that it was necessary to test the new scheme on sites with the maximum area in order to come up with a ready-made solution by 2018, and the committee voted for the bill unanimously,” he said. Budget Committee member Lev Kovpak, whose family owns the large regional retail chain Kirovsky, did not agree with this attitude: “When we discussed this, there was no decision yet on raising excise taxes, taxes, insurance premiums - the burden on entrepreneurs will increase by 140 billion. There was no situation when GDP grew by 0.5% and inflation by 10%. Maybe we can return to this issue next year? And better in 2018.” To this, Mr. Tereshkov objected that by postponing changes, legislators are putting entrepreneurs in an even more uncomfortable position. As a result, there were not enough votes to pass the bill, as well as to reject it. Deputies will consider the amendments again at the next meeting.

“It is quite obvious that the bill was not adopted due to the lobbying activity of individual deputies, whose direct interests it affects,” says Alexander Belousov, head of the expert council of the Political Center CC. “There simply turned out to be more of them, and not enough work was done with the remaining deputies. “I think that the law can be adopted, but in a modified form, in which it will least infringe on market participants who have their representation in the regional parliament.” The expert added that the situation with the bill clearly demonstrated the presence of specific economic interests in the legislative assembly. At the same time, it is still quite difficult to assess the comprehensive effect of the changes proposed by the government. “Retail in the Sverdlovsk region makes a significant contribution to the budget. Meanwhile, in the current conditions, the number of visitors to shopping centers is declining, rental rates are not rising, and, perhaps, will fall. Real estate owners will not replenish the budget at the expense of their own falling margins and will try to shift the increase in tax fees to retail,” notes Yaroslav Savin, head of the Center for Business Structuring and Tax Security - taxCOACH. In his opinion, the burden of additional burden will ultimately be shifted to buyers.

Dmitry Komarov

Benefits protected the haves