Approximately 100 ASEZs soon to be created in single-industry towns
The establishment of some 100 advanced special economic zones (ASEZs) in single-industry towns is planned for the near future, reports Vnesheconombank Deputy Chair Irina Makieva.
“Single-industry towns have entered the advanced special economic zone phase. At present, these zones are in use largely in cities in the Far Eastern Federal District. Decisions were made on 11 single-industry towns before the end of 2016. I can say that in the near future, 100 advanced special economic zones will be established in single-industry towns”, the press service of the Single-Industry Town Development Fund quoted Makieva as saying.
According to Makieva, benefits to support business owners in single-industry towns are planned. “Federal benefits take the form of zero-rated income, land, and property taxes, while regional taxes will be set at 5% for the first five years and 10% for the next five. In addition, insurance premiums will be reduced fourfold”, she added.
Makieva also noted the need for city mayors to work together in order to increase efficiency. “A number of municipalities have admitted that they cannot survive on their own. In order to create economically advantageous conditions, mayors need to coordinate amongst themselves; it is extremely unfortunate that our governors cannot always reach agreement. Each builds his own cement factory in his own area, wreaking havoc on neighbouring production facilities. Not every region needs a cement factory”, she said.
Makieva added that the mayors of single-industry towns already cooperate and use a division of labour model. “They emphasize their strengths and make deals with their neighbours. One in three such towns has gone down this route”, she underscored.
Source: tass.ru/ekonomika (Russian)
