The Government Approved Benefits and Subsidies for Automakers
OREANDA-NEWS Deputy Prime Minister Dmitry Kozak has instructed the concerned departments (Ministry of Industry and Trade, Ministry of Economic Development, the Ministry of Finance and FAS) to ensure the conclusion of investment contracts with GAZ group, Hyundai, BMW and "Avtotor". This information follows from the meeting of 22 November.
Four automakers should receive a single volume of preferences, which is limited exclusively to the "stabilization" clause (guarantees the investor the non-deterioration of business conditions for the duration of the contract) and a list of tax benefits.
As it is specified, decisions on regional privileges are made by local governments.
In addition, until 30 December 2018, the Ministry of Industry and Trade, the Ministry of Economic Development, the Ministry of Finance and the FAS, taking into account the proposals of the government of the Kaliningrad region (in the region there are enterprises of "Avtotor", where the plant of BMW, Hyundai and Kia is organized), should prepare and submit to the government a bill providing for the allocation of subsidies from the Federal budget to all manufacturers of wheeled vehicles on equal terms. These are subsidies to compensate for part of the cost of maintaining jobs, for the production and support of guarantee obligations of vehicles that meet Euro-4 and Euro-5 standards, for the use of energy-intensive enterprises.
The current regime, which is regulated by the government decree on industrial plant, is coming to the end: the agreement ends in 2018-2019 for different automakers. SPIC in the first version assumes that in order to receive benefits, the company must invest from 750 million rubles and reach the established level of localization (on average 60%).
In the new version of special investment contracts under development, more requirements will be imposed on the export and localization of automotive components, the required amount of investments will be increased (from 1 billion rubles). In addition, agreements on the new version of the SPIC will be signed with a VAT rate of 20%. For those who signed the previous version of the investment contracts, VAT will be fixed at 18%.