The Legislative Duma of Tomsk Oblast
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November 27, 2014. Address by Speaker Oksana Kozlovskaya at the 36th session of the Legislative Duma of Tomsk Oblast
The key highlight of the month of November on the global scale was the G20 summit in Australia. It was a challenging dialogue for Russia whose position was to discuss and seek compromise on each item on the global agenda. Even though politics stole the scene from economy, the G20 leaders were aligned on the common goal to achieve global growth despite political changes or risks.
The current economic situation in Russia and the budget remain on top of the domestic agenda. The fundamental economic document of our country has undergone substantial changes in the State Duma discussions. In 2015, extra 20 billion rubles will be allocated to substitute agricultural imports. Another 20 billion rubles will be spent on the development of industrial production and some specific economic sectors. The new budget still contains funds to continue the nursery schools construction program and development of public associations of disabled people.
What is most important about the 2015 budget, it ensures delivery on all social commitments over three years.
Among the most memorable November events in Tomsk Oblast was opening of the bridge over the Vakh river. The new bridges has connected two regions and opened a direct route from Siberia to the Urals.
Liberalization of small economy has again come into the spotlight in the midst of the economic turmoil. Stakes are placed on the small and medium business which is meant to stabilize the domestic economy by providing jobs and income. Financial crises of 1998 and 2008 are good examples.
Today, according to the Russian Ministry of Economy, small and medium business provides one of every five jobs in Russia and generates 25% of the country’s earnings. Retail and wholesale trade accounts for 54% of all Russia’s small and medium business yet the situation varies between regions.
At the same time, the latest polls of entrepreneurs have shown that high taxes, interest rates and red tape are still holding back the development of a healthy business environment in Russia.
What are we doing to reverse the trend?
There are several large-scale federal initiatives.
First of all, tax holidays. In November, the State Duma deputies passed in the first reading amendments to the Russian Tax Code which allow the regions establish a zero tax rate for manufacturing, social, or research sole proprietorships.
Tomsk Oblast already has many tax benefits in place such as reduced tax rates for small size residents of the Tomsk SEZ – 5% instead of 15% – and 7.5% for manufacturing, construction and transportation firms. It also offers comprehensive and accessible infrastructure for small innovative companies.
Secondly, the federal law has defined a new category of own-account workers. The Russian Chamber of Crafts has estimated that they number approximately 5 million people.
The new law prohibits for craftsmen to hire wage workers. Instead, they will buy a patent. The price varies among trades and regions. In Tomsk Oblast it will be around 7,000-30,000 rubles depending on the trade. For the first time in Russia these entrepreneurs will be provided government support and guaranteed pension allowance.
Another important way to support small business is through public procurement initiatives. The government of Russia has developed amendments to law No. 44-FZ on increasing pubic purchase quotas for small business to 25% over three years. It applies mostly to products and services of small innovative firms.
Tomsk Oblast has been for a long time pursuing efforts to boost the demand for innovative products through public procurement. We are among the few regions of Russia who created a functioning register of innovative products and firms, provides tangible incentives to exports and facilitates the search for new markets for its business. Russian experts rate the Tomsk system for the development of non-oil and gas sectors among the most efficient in the country.
Recently, the Agency for Strategic Initiatives has launched the national rating of Russian regions by their investment climate. They looked at 21 regions. Tomsk Oblast is among the leaders!
There are 39 items on today’s agenda.
