In Crimea, the adopted law on the zeroing of VAT for the tourism industry was evaluated

CrimeaPRESS reports:

22 March, the State Duma in the second and immediately in the third reading considered and unanimously approved the law, which introduces a number of tax breaks as part of the anti-crisis measures envisaged by the Government. It is proposed to reduce taxes both for individuals and for businesses, in particular the tourism industry.

Thus, the law provides for tax incentives for the hotel business and IT companies. For five years, the value added tax rate for existing hotels will be reduced from 20% to 0%. A similar benefit will be available to investors who build, lease and manage hotels and other accommodation facilities.

As Chairman of the State Duma Vyacheslav Volodin noted, reducing the tax burden will increase the competitiveness and investment attractiveness of these sectors of the economy. This will not only save, but also create new jobs in the tourism industry and the IT industry.

Earlier, Deputy Prime Minister of the Russian Federation Dmitry Chernyshenko said that in connection with the current situation, a significant excess of demand for holidays in Russia over supply is expected in the near future. The new measure will support the hotel and tourism industry and create conditions for its accelerated development.

The first five years are the most important for business development. This is an exit to self-sufficiency and break-even, so this period was identified as key in terms of support. In addition, this measure will provide conditions for restraining pricing in hotels against the backdrop of a rapid increase in costs for key items of expenditure, will save jobs in the industry in the current activities of enterprises , the Government of the Russian Federation noted.

According to the Minister of Resorts and Tourism of the Republic of Crimea, Vadim Volchenko, the decision of the Russian Government to introduce a zero VAT rate for companies that invest in the creation of tourist facilities is unprecedented and revolutionary.

The adopted law on zeroing the VAT rate is a breakthrough decision that will become a serious incentive for the further development of the industry. This will undoubtedly lead to the growth of a high-quality modern room stock, which is extremely necessary for us and what we are actively doing now. In the coming years, we will receive 3.5 — 5 thousand new rooms in modern hotel complexes of the level from 3 to 5 stars, including thanks to the government programs that are already running, and the new Law will strengthen and activate this trend.

At the moment, there are already tourist areas in the republic that have been developed and are ready for investors to enter there. Some territories are still under development, and there are a number of new projects that are currently being worked out , the Crimean Minister commented on the new law.