Tatarstan may lose 7.5bn rub from abolition of tax regime for Consolidated Group of Taxpayers
The losses of the budget of Tatarstan from the abolition of the tax regime of the Consolidated Groups of Taxpayers (CGT) are going to amount to 7,5 billion rubles. An exception can be made for Tatneft, which will be allowed to pay taxes in the home region, that is, to the republican treasury, Tatarstan Finance Minister Radik Gayzatullin reported at a meeting of the Tatarstan State Council Committee on Budget, Taxes and Finance.
Ministry of Finance is liquidating CGT
From January 1 next year, at the insistence of the Ministry of Finance of the Russian Federation, the institute of Consolidated Groups of Taxpayers (CGT) will be liquidated. It allowed large vertically industrial holdings to pay income tax in different regions of their presence. According to federal media, 16 holdings, including Gazprom, X5 Group, Tatneft, operate in the CGT mode.
As a result of the cancellation, income tax receipts will be redistributed between regions, since the entire amount will be directly centralised in the federal budget. St. Petersburg turned out to the most affected — the governor of the Northern capital has recently announced losses of 450 billion rubles in the future three years.
“Governors of many regions [have] raised this question”
What losses will the republic suffer and whether it will be compensated for the loss of income? This issue was raised by the head of the Budget Committee of the State Council of the Republic of Tatarstan, Leonid Yakunin, on 12 October, taking advantage of the presence of State Duma Deputy Ayrat Farrakhov.
“A number of changes have been made to the draft federal law on the budget. Including the cancellation of the payment of taxes of the CGT. How is this affecting our republic, since we have 9-10 CGTs registered? Do we have a plus or minus? The governors of many regions raised this issue before the Ministry of Finance of the Russian Federation in the Federation Council," he recalled. “Were they compensated somehow?
In response, the Minister of Finance of the Republic of Tatarstan stated that 10 CGTs, including Tatneft, operate in the republic. The rest are interregional CGTs.
“But Gazprom pays the main amount of income tax. It has a large sum," Radik Gayzatullin reported, without specifying any figures.
According to his calculations, if the CGT pays income tax only at the main place of registration (that is, in the home region), the treasury will lose 7,5 billion rubles. In total, Tatarstan is going to receive about 9,5 billion rubles from the CGT this year, and if we rely on these figures, then after the cancellation of the CGT next year, the treasury will receive only 2 billion rubles.
The bill on the abolition of the CGT, developed by the Ministry of Finance of the Russian Federation, is being approved by the State Duma. Its consideration is scheduled for October 26.
Tatneft will pay at home
At the same time, Tatneft will be excluded from the CGT and will have the right to pay the tax in full in the home region, Gayzatullin noted. Agreements on this have been reached by the leadership of the Republic of Tatarstan.
“Thanks to the authority of [Tatarstan President Rustam] Minnikhanov, Tatneft iwill not be included in the CGT, there is an article there that allows them to pay only to the republican budget," he noted.
According to him, if the law passes in this version, then Tatneft will pay like the rest, that is, to the Tatarstan budget.
“And we will see how much others will pay over the next year. The Ministry of Finance says that you will not have any losses," Gayzattulin concluded with doubt in his voice.
We should add that the loss of income from the CGT is estimated at about 10% of the total amount of income tax for 2023.