Economy
Arkhangelsk Region Governor suggests easing financial burden on small and medium-sized businesses
© RIA Novosti. Ramil Sitdikov

Arkhangelsk Region Governor suggests easing financial burden on small and medium-sized businesses

Arkhangelsk Region Governor Igor Orlov has suggested easing financial burden on small and medium-sized businesses. He advanced this proposal during a working meeting with President Vladimir Putin, the meeting's transcript posted at kremlin.ru reads.

We have studied the experience in territories of priority socioeconomic development, including in the Far East, Mr Orlov said. We have a tool to substitute corporate obligations with social contributions, he added. We are not talking about any tough decisions concerning territories slated for priority socioeconomic development when the obligations are reduced from 30 percent to 7.9 percent, he added. This should be done in line with actual expenses, keeping in mind that these sums and obligations aren't very impressive, he noted.

Mr Orlov explained that companies operating in the Extreme North should pay higher wages to their employees, as stipulated by law, and reimburse them for extended vacations and travel expenses. Besides, shorter working days for women are stipulated. According to Mr Orlov, major companies are able to afford such expenses, while other business managers are forced to search for alternatives, to deal with self-employed business persons, which in fact prevents faster growth in the development of businesses.

He said that last year the region increased social contributions for such companies because this initiative creates growth opportunities for the Extreme North. This problem affects corporate competitiveness, and a solution would help a lot, and would attract investment in this area, he noted.

Let's ask the Government to evaluate, President Putin replied.