Government to support travel industry in Russian Far East

It has been proposed to zero the profit tax rate for hotels and other facilities offering accommodation for tourists.

Government to support travel industry in Russian Far East

It has been proposed to zero the profit tax rate for hotels and other facilities offering accommodation for tourists.

A meeting of the Russian Government took place yesterday where Dmitry Medvedev promised to support the travel industry in the Russian Far East.

"A number of amendments to the Tax Code must help travel businesses in the Russian Far East develop. This place features unique nature but is yet to be developed. Put it mildly, the service level is not high and the number of tourists is few, that is why travel businesses need to be supported. It has been proposed to zero the profit tax rate for hotels and other facilities offering accommodation for tourists. Such decision is going to be in effect until the end of 2021," the Chairman of the Russian Government emphasized.

According to Alexander Galushka, the Minister of the Russian Federation in charge for developing the Far East, "a wide range of tax preferences has already been established for investors in the Far East. The mechanism mentioned in the draft bill is going to make the travel industry in the macro-region even more attractive and will enable the implementation of a number of tourist related initiatives."