Tatarstan grants tax credits to hard pressed sector

Published: 4/12/2000

The Tatarstan government has granted investment tax credits to several companies in the region's river and air transport sector. These companies include the state unitary enterprises, Tatarstan Airlines and the Bulgulma air enterprises. Joint stock companies, 2nd Kazan air enterprise, Kazan international airport, the shipping company, Tatflot and River Harbour are also included. According to Tatarstan's Ministry of Industry and Economics, the credits are designed to stabilise the financial condition of the companies concerned. The credits are reported to match the companies' payments to the 2000 budget (excluding payments for social funds) and outstanding debts as of 1st January 2000. The credits are to be charged at 25% of the Russian Central Bank refinancing rate. The Tatarstan government has recommended that local administrations offer the companies similar credits. The scale of the credits suggests that the sector is under fairly intense pressure.

Article ID: 1592