Tatarstan fiscal, treasury and tax authorities sum up performance in the first quarter

Growth in tax proceeds has been seen in Tatarstan in the first quarter of 2011. Revenues made 14 billion roubles more than in the pre-crisis year of 2008, including 6.7 billion more in Tatarstan’s consolidated budget.

A meeting held by the local fiscal, treasury and tax authorities discussed the performance under Tatarstan’s budget in the first quarter of 2011. The meeting was a video conference, chaired by Tatarstan President Rustam Minnikhanov.

Budget execution proceeded as scheduled, Rustam Minnikhanov said, opening the meeting. The last year was complicated, however, which has created a large budget deficit. With this in view, the municipalities chiefs were recommended to refrain from borrowing without a consent from the Tatarstan Finance Ministry. The priority tasks for this year include developing a three-year budget plan, increasing teachers’ salaries and fulfilling the obligations on providing dwelling for young families and public sector employees, Rustam Minnikhanov stressed.

Federal Tax Service chief in Tatarstan Marat Safiullin reported on the tax authorities’s performance in the first quarter. Despite some positive developments, the situation is complicated, he said. Many manufacturers in the real sector are only beginning to restore pre-crisis production rates, as evidenced by the profit tax proceeds. “While the profit tax base last year increased 13 percent, the sum of estimated losses totals about 20 billion roubles,” the tax authority chief said.

Tax authorities in Tatarstan in the first quarter collected 64 billion roubles, paid to the budgets of all levels (without a single welfare tax). A total of 35.8 billion roubles was paid to the federal budget, 28.3 billion to the Tatarstan’s consolidated budget.

Summarising, the Tatarstan President noted the situation was not bad, excluding several regions. He instructed the relevant authorities to take an inventory at all the loss-generating manufacturing companies. Along with that, conditions for all the manufacturing companies in Tatarstan to pay profit tax should be provided. Income tax payment in the rural regions needs to be supervised. “Any borrowings can only be in exceptional cases. Our task is to provide convenient conditions for business development and petrochemical companies', who are substantial contributors to the Tatarstan’s revenues, operation. Regarding a land tax increase, it should be phased,” Rustam Minnikhanov noted.