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The State Duma proposes to leave the UTII regime to the Far East
The State Duma proposed the Russian government to extend the effect of the single imputed income tax (UTII) for small and medium-sized enterprises in the Far East and the Arctic. Deputies propose extending this regime until 2024 of the year.
As the "Russian newspaper", parliamentarians are in favor of phasing out the tax, depending on the population living in the territory of the municipality. If there are less than 300 thousand inhabitants, then the tax is proposed to be extended until January 1 2022 of the year, if less than 150 thousand - until January 1 2023, and if less than ten thousand - until January 1 2024.
According to the Chairman of the State Duma Committee on Regional Policy and Problems of the North and the Far East, Nikolai Kharitonov, most entrepreneurs do not see a profitable replacement for UTII. At the same time, small-scale retail trade and the sphere of domestic services are primarily affected. The government should give its answer to the initiative of the State Duma at the end of this year.
The Ministry of Finance of Russia noted that the UTII regime expires from 2021 of the year. The department considers him ineffective, since it leads to a significant tax evasion.