Enterprises of the Smolensk Region Are Granted Tax Exemptions

The meeting of the Commission on Investment Policy has taken place in the Regional Administrative Office chaired by Deputy Governor Rostislav Rovbel. The event involved executive officers, heads of the regional business communities, deputies of the Smolensk Regional Duma.

The Commission members have considered two investment projects, that applied for the tax benefits allocated for the approved investment projects. It should be recalled that the tax preferences can be granted in the form of a total exemption or a reduced rate of the corporate property tax, charged to the regional budget and amounting up to 13.5%, which is one of the major support measures rendered to the regional industrial enterprises.

Implementation of a project by LEDVANCE JSC with a total project cost over 200 million rubles will facilitate reducing production costs, boosting sales, diversifying the product range and improving the company’s operating profitability, which is expected to bring huge assignments into the consolidated budget.

Another project by D-Polymer company has also been considered during the Commission meeting. The company is located in Desnogorsk and produces high-quality polymer films and polypropene goods. The enterprise is equipped with automated stretch-film production lines, cast lines and thermoforming machines, that have no rivals in Russia. The investment project worth a total of 90 million rubles is primarily aimed at creating a new industrial facility to produce rigid polymer packaging.

Following the result of the Commission meeting, it has been unanimously decided to assign a respective status to both of the investment projects since January 1, 2019, as well as to provide the companies state support in the form of corporate income tax allowances.