Back to the USSR? Tax breaks for those who holiday within Russia

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April 20th, 2017 – Fort Russ News –

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Rusvesna – translated by Inessa Sinchougova

Russian citizens who holiday in Russia’s resorts will be able to claim a tax break of up to 120 thousand rubles ($2,136 USD in April 2016).

Parliament deputy Igor Fomin stated that the relevant proposals of the Federation Council (FC) on social policy were raised at the recent meeting of the working group. 

Currently, the tax deduction applies only to the cost of health treatments in “sanatoriums” (spa resorts) and is not more than 30% of the total holiday price. According to the deputy, this policy will ensure a substantial increase in the Russian tourist market. 

“One of the major factors that can help the development of the Russian spa complex, is the increase in effective demand” – said Fomin.

An even more radical measure would be a mechanism by which every citizen can buy themselves a a holiday ticket and then receive a direct deduction from their personal income tax. The adoption of such a tax credit, in my estimation, would increase the turnover of the Russian spa market by 10-15 billion rubles a year.

Director of the Trade Unions of the Spa Management, Mykola Murashko, agreed that such measures will be able to attract significantly more customers to local resorts.

“The idea is very good, because it does not require any changes. These deductions exist in the tax code, they just need to expand. You can also do this for businesses.”

According to the State register, most of the sanatoriums are concentrated in the Crimea, Krasnodar and Stavropol regions – traditional holiday spots during the Soviet times.

Ed: A similar programme existed in the Soviet Union, where instead of ‘tax breaks’, vacations were simply provided for free or an insignificant cost, to a large percentage of the population. 

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