Vladimir Putin
Vladimir Putin

Russian President Vladimir Putin on Wednesday proposed a set of measures to stimulate economic growth in the country, saying a new investment cycle is needed.

“The growth rate of the gross domestic product (GDP) in 2021 should exceed the world average,” Putin said in his annual address to Russia’s Federal Assembly.

“To get this dynamic, we need to start a new investment cycle and seriously increase investments in creating and updating jobs, infrastructure, and in the development of industry, agriculture and the services sector,” he said.

The president said that starting from 2020, annual investment growth should be at least 5 percent, and the share of investment in the country’s GDP should be increased from the current 21 percent to 25 percent in 2024.

Putin asked the parliament and the government to speed up the adoption of a package of bills encouraging investment, adding that taxes for business should be unchanged for six years.

Taxes for large and significant projects should also be unchanged for up to 20 years, while standards for the construction of production facilities should be fixed for three years, he added.

Putin said small and medium-sized businesses should be supported.

The president mentioned that local authorities have the right to provide a three-year income tax exemption for new businesses, but they rarely use it because regional budgets lose revenues.

Putin proposed compensating the regions for two-thirds of their shortfall in income from applying the investment tax deduction.

He said this measure will encourage regional authorities to provide the tax benefit to small and medium-sized businesses more often. Enditem

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