We’d like to inform you about the first exemplary cooperation between all links of the production chain “malting barley – beer” and legislative bodies of the Omsk Region.
For the first time in the history of the development of Omsk brewing industry, according to the position of the Governor Nazarov V.I. and the Minister of Agriculture Erlih V.A., under the auspices of the malting barley supporting program there were accommodated the interests of the largest transnational brewer – the company “SUN InBev”, the members of the Union “Barley, Malt, Hops & Beer in Russia” – Omsk malting barley producers and representatives of the small and medium-sized brewing business of the Omsk Region.
Legislative Assembly in the Omsk Region is planning to exempt beer producers from assets taxes for two years. The brewing company “SUN InBev” and other private breweries will get tax concessions. Deputies are planning to increase the amount of excise duties transferring to the regional budget and to switch Omsk beer lovers to the local products.
In January 17, Economic Policy and Investments Committee of the Omsk Legislative Assembly approved amendments of the “Assets Tax Act” in so far as it relates to the tax concessions for regional beer producers.
In order to get a tax concession, beer producers shall fulfill a set of conditions. Deputy Minister of Economic Affairs in the Omsk Region Denis Denezhkin told about these concessions during the Committee meeting.
Local companies with a beer product earnings not less than 70% equal to all income can get a tax concession. Besides, the company shall use malting barley grown in the Omsk Region. They also shall increase excise payments to 5% to the regional budget during the specified period.
In 2014 there is a tendency for beer market drop and failure to take supporting measures will lead to the reducing of revenues to the regional budget. According to the estimates of the Deputy Minister of Economic Affairs the sum of tax concessions will be near 160 million rub. and amount of revenues increase – over 500 million rub. for two years. Otherwise the budget can lose 1 billion rub.
The Minister of Finance of the Omsk Region Rita Fomina supported his position claiming that income base in Omsk is falling.
It should be mentioned that at the end of the year 2013 this draft bill has been already discussed by the Legislative Assembly but raised public prosecution and deputies’ questions. Today problems with public prosecutions department and deputies are settled. Even Social Revolutionary Alexey Provozin calling for temperance supported Omsk brewers:
“We have got a chain of “live” beer shops.” Altai and Tomsk beer is generally sold there. We shall support local beer producers and cover volumes from the other regions. If people drink then let them drink Omsk beer and pay excise duties.”
We are happy observing a situation where all representatives of the industry are solving problems together. The Union “Barley, Malt, Hops & Beer in Russia” expresses gratitude to the Administration of the Omsk Region and the company “SUN InBev” for cooperation.
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