Moscow, Khanty-Mansiysk Autonomous district and Bashkortostan have become the regions with the most efficient tax policy should be rated from PwC. The last places are held by North Ossetia and the Smolensk oblast
Photo: Maxim Zmeyev / Reuters
The most effective Russian regions from the point of view of tax policy at the end of 2017 began to Moscow, Khanty-Mansi Autonomous district and Bashkortostan should be rated from PricewaterhouseCoopers, which reviewed RBC. The worst performance in Northern Ossetia, Smolensk and Astrakhan regions.
How do you assess the regions
PwC estimates the tax potential of Russian regions for the seven indicators. In the ranking analyses, introduced in the region the calculation of the tax on property of enterprises and tax on property of natural persons from the cadastral value of the degree of development of the patent system of taxation. In addition, the experts took into account the cost of the patent for migrants, the rate of the transport tax, tax debt.
More points are awarded to the regions that we live within our means and take into account the security budget and provide tax benefits. “Tax incentives should be provided at the expense of own means, and not by subsidies or public debt”, — noted the experts of PwC.
Moscow and KHMAO leaders in the ranking for the third consecutive year, however, the Bashkirs came in the top three most effective agents for the first time. This is the only subsidized region among the leaders. The share of subsidies in the budget of the Republic, according to local authorities, accounting for 8.3% of its own revenues. “Bashkiria very carefully refers to the distribution of tax benefits and preferences,” — said RBC PwC partner Cyril Nikitin. Leaders, according to him, the first and to the fullest extent possible took advantage of the opportunities for growth in tax revenues.
Five leading regions — Moscow, Khanty-Mansiysk, Bashkortostan, Sakhalin and Novosibirsk region — in 2015, as soon as was possible, began to calculate the tax on property of organizations and individuals, the cadastral value of the property and set a high transport tax for powerful cars, providing a growth of the tax base attributed to the PwC.
“Those regions which, in the opinion of some experts, too good feel in terms of budgetary provision, not by personal merit, but because they are “lucky”, actually carried out the active fiscal policy and long used its tools that others chose not to notice, focusing on getting subsidies,” said Nikitin.
As the authors of the study, Moscow, Khanty-Mansiysk Autonomous district and Sakhalin region provide tax benefits at the expense of own means, and not subsidies. All the leading regions except for the Khanty, the decreased tax liability. Seriously lowered the tax arrears to not more than 5% of the tax revenue, Vologda oblast, Komi Republic, Arkhangelsk oblast, Ulyanovsk oblast and Tatarstan.
Experts analyzed the data at the end of 2017, so the recent successes of the individual subjects will be reflected in next year’s ranking. In particular, as explained by Cyril Nikitin, according to PwC, “Perm Krai next year may be much higher in ranking now that point are looking to the benefits for income tax, working for a number of other areas, debt, and property taxes.”
The Vologda oblast was beaten out in the top ten, rising from 28th place to 6th place in the ranking. According to the report, the success of the Vologda area has brought revision of tax incentives, the development of the patent system of taxation and the tax debt. Negative dynamics was shown the Crimea for a year, he fell from 63rd to 78th place.
Weak use of tax powers and authorities of North Ossetia, Smolensk and Astrakhan regions, the Krasnoyarsk Krai and Dagestan, according to the report. In Dagestan, North Ossetia and Smolensk region, tax arrears increased, exceeding 20% of tax revenues.
The regions that receive subsidies, no incentives for working with the tax base, experts PwC. The Ministry of Finance imposes much more stringent requirements on the tax policy of highly subsidized regions, said in an interview with RBC leading researcher of the development Center of HSE Andrew Cherniavsky. From 2017, the regions that receive subsidies on equalization of budget sufficiency, must enter into an agreement with the Ministry of Finance and to revise or abolish ineffective tax benefits. Regions that fail to meet the conditions, give less subsidies.
“The Federal center is pushing the regions towards waiver of tax incentives. They have to prove their effectiveness, that is quite difficult. Therefore, many people from these benefits to give. We are talking primarily about the income tax by which the tax code provides significant benefits, but they can only afford the donor regions,” — said Chernyavskaya. According to experts, the rating PwC does not take into account the problems faced by the regions. “If one is the revision of tax policy, but not in others, we should look at why government entities don’t want to increase taxes,” — said Chernyavskaya.
Helped with the credits
In 2018, the Ministry of Finance launched a program of restructuring of budget loans to the regions (allocated from the Federal budget under the symbolic 0.1% per annum), which will reduce the level of debt in the Russian regions increased against the backdrop of sanctions, falling oil prices and implementation of the may decrees on increase of salaries of state employees. The program budget was allocated 55 billion rubles, as calculated for seven years. In 2018-2019 regions will need to pay only 5% of the total amount of debt to the Federal budget, but they are subject to the restrictions on the deficit and spending budget.
According to the Finance Ministry, the number of regions with budget surplus increased by 40% in 2017, and reached 45. The number of regions with the budget deficit was reduced to 40 to 58 a year earlier, and 76 in 2015. The consolidated deficit of regional budgets by the end of 2017 amounted to 15.5 billion rubles, and the deficit of the consolidated regional budgets (including budgets of municipalities) — 51,9 billion rubles.