Russian Econ Min wants to keep 20% insurance premium discount for small business
MOSCOW. May 24 (Interfax) - The Russian Economic Development Ministry is in favor of keeping the 20% discount on insurance premiums for small businesses that work in the production and social spheres, Director of the ministry's Department for the Development of Small Business and Competition, Natalya Larionova, said at a Friday briefing.
"From our point of view, we need to maintain the discount regime. Yes, there will be income shortfalls of approximately 60-70 billion rubles, according to our colleagues' estimates. This is a decision that is predetermined not only by financial issues, but by the catastrophic situation that has developed with individuals," she said.
If the law is not changed, insurance premium rates for the aforementioned type of business will rise to 30% on January 1, 2014, then to 34% in 2015. According to Larionova, the special discounted premium currently applies to around 140,000 companies.
She noted that the Economic Development Ministry is advocating not to postpone the rate hikes, but to fix the rates permanently at 20%. This has to be done at least by 2018, Larionova said.
