Support The Moscow Times!

Bill to Tax Foreign Films Withdrawn

Hollywood's increasing presence in the Russian market has affected local fare, which has seen its share decline in recent years. Marco Sparmberg

A bill calling for movie theaters that show foreign films to be charged value-added tax has been withdrawn from the State Duma by its own authors, a news report said Wednesday.

Sergei Zheleznyak, a Duma deputy for United Russia, submitted the bill in December 2012 with the intention of protecting Russia's film industry.

Removal of the tax benefit would cost domestic cinemas 6 billion rubles ($187 million) annually. In 2012 cinemas in Russia and the former Soviet republics  excluding Ukraine, took in 39.4 billion rubles, kinometro.ru reported. Of that sum, 33.3 billion rubles came from foreign films.

However, all nine United Russia deputies who supported the bill removed their signatures in September after several Duma committees criticized it, Kommersant reported.

The bill was set for its first reading in the Fall session, but in June it got a negative write up from the Duma's Culture Committee, which is headed by film director Stanislav Govorukhin.

Another bone of contention is that the WTO forbids members from imposing discriminatory tax rates on foreign products. Zheleznyak said that during the government's consideration of the bill, it came to the Duma's attention that Turkey had tried to introduce different tax rates from domestic and foreign films several years ago and the decision was assailed by the WTO.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more