25 June 2008, 10:07
The Bill (Reg. No.2356) introduces investment and innovation tax credit, and establishes the rates of income tax in the amount of 20 per cent, provided the income is invested into the renovation of fixed assets of 2 and 3 groups (except of motor cars) and objects of non-material assets in the form of titles to industrial property, provided they are used in economic activity for not less than three years.
The People´s Deputies believe that "establishment of tax benefits results in the loss of governmental control over proper use of budget funds exempt from tax, reduction in budget receipts, and origin of new schemes of tax evasion".
The People´s Deputies stated that the Bill fails to specify conditions for granting investment and innovation tax credit, and mechanism for securing its repayment.
Moreover, the Bill fails to include financial and economic argumentation of budget expenditures.