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Kazan City Duma Adopts a Package of Tax Privileges for Owners of Multi –storey Parking...
(KZN.RU, April 27th, by Taisiya Basharkina). Kazan is to introduce minimum land tax rates for owners of multi – storey parking garages. Besides, the correction factor of a single tax on imputed income is to be lowered by 50 times for this kind of property. This decision was adopted today by deputies of the Kazan City hall at its 5th session.
The land tax rate for owners of multi – storey and underground garages accommodating at least 150 cars and constructed not later than 2013 has been set at 0.0001 % of cadastral land value. It was 0.7 % before. The correction factor of a single tax on imputed income for this kind of property will be 0.01 instead of the previous 0.5.
In recent years, increasing numbers of cars in Kazan have caused serious transportation problems. One solution of the traffic jams is the construction of multi-storey and underground parking garages.
Modern garage construction is not particularly profitable, investments paying off within eight years. To raise investment appeal of garage construction, it has been decided to introduce a package of tax privileges for this kind of activity. Today, the City Duma deputies have adopted the new tax rates.
«This is a very important decision; we create favorable conditions for those businessmen who can and want to invest in the construction of parking garages in Kazan. We hope that this will be another step towards the solution of the transportation problems», the Mayor of Kazan Il’sur Metshin remarked.
We would like to remind the reader that it was Tatarstan’s President Rustam Minnikhanov who proposed granting tax privileges to entrepreneurs who invest in building multi-storey parking garages. He instructed the deputies to take appropriate decisions before the end of April. In the near future, the State Council of Tatarstan will consider the possibility of granting tax privileges, including those on property and profit, for this kind of business within the limits of the Republic’s legislation.