The option of canceling VAT benefits for developers that currently exist in
Posted: Wed Jan 22, 2025 5:42 am
“Moreover, introducing such a tax on imported software would be a direct violation of WTO rules, which would only increase pressure on Russia and cause new sanctions,” APKIT members add.
Russia has also drawn criticism from the industry. According to APKIT, "it is less dangerous than a tax on software sales, but it also creates problems for Russian manufacturers and does not lead to the stated goal." Many Russian software manufacturers may suffer because of it, which will result in higher prices and increased costs for consumers, which will slow down the acquisition and ordering of Russian developments.
APKIT
"In addition, there is no guarantee that the additional tax pakistan mobile phone numbers database collected in this way will be used to finance software development projects. Even if there are any agreements in the government, any agreements are temporary, and VAT on software, if introduced, is unlikely to be cancelled later."
According to APKIT, “Russian developers, for whom these actions are being undertaken, will only receive a worsening of the conditions for creating import-substituting software products.”
Industry representatives also criticize the proposal to provide subsidies to domestic software developers in exchange for a blocking stake that companies would have to transfer to the state. In this case, software producers will not be able to mass-produce their products and sell them to other customers. In addition, these measures will create unequal conditions for doing business for commercial companies and those supported by the state.
“De facto, it is proposed to form a system that strengthens state control over the IT market through a system of distribution of funds, which also creates an opaque market,” APKIT writes.
The organization is also unhappy that the Ministry of Communications does not publish or discuss with the industry a list of domestic software that will need to be urgently developed for import substitution.
"Sometimes it is stated that it should include an office suite. But now there is a lot of free office software that is not limited by any sanctions. Why raise money to create another version of such software?", industry representatives write.
Russia has also drawn criticism from the industry. According to APKIT, "it is less dangerous than a tax on software sales, but it also creates problems for Russian manufacturers and does not lead to the stated goal." Many Russian software manufacturers may suffer because of it, which will result in higher prices and increased costs for consumers, which will slow down the acquisition and ordering of Russian developments.
APKIT
"In addition, there is no guarantee that the additional tax pakistan mobile phone numbers database collected in this way will be used to finance software development projects. Even if there are any agreements in the government, any agreements are temporary, and VAT on software, if introduced, is unlikely to be cancelled later."
According to APKIT, “Russian developers, for whom these actions are being undertaken, will only receive a worsening of the conditions for creating import-substituting software products.”
Industry representatives also criticize the proposal to provide subsidies to domestic software developers in exchange for a blocking stake that companies would have to transfer to the state. In this case, software producers will not be able to mass-produce their products and sell them to other customers. In addition, these measures will create unequal conditions for doing business for commercial companies and those supported by the state.
“De facto, it is proposed to form a system that strengthens state control over the IT market through a system of distribution of funds, which also creates an opaque market,” APKIT writes.
The organization is also unhappy that the Ministry of Communications does not publish or discuss with the industry a list of domestic software that will need to be urgently developed for import substitution.
"Sometimes it is stated that it should include an office suite. But now there is a lot of free office software that is not limited by any sanctions. Why raise money to create another version of such software?", industry representatives write.