Russian President Vladimir Putin signed a law that has set zero tax rates for agricultural producers on profits.
The Russian President (pictured) signed the federal law on 3 Ocober, "On Amendments to the Tax Code of the Russian Federation and the Annulment of Certain Provisions of Legislative Acts of the Russian Federation."
"Our company appreciates the decision to extend the zero rate of income tax for agricultural producers,” said Sergei Mikhailov, Cherkizovo Group’s general director.
“The reset of income tax will have a positive impact on our business and the industry as a whole, as it will allow manufacturers to increase long-term investment programs and increase competitiveness, which is critical since Russia joined the WTO. This decision will allow domestic agricultural companies to successfully implement new investment projects in the pork segment, where the payback period is higher."
The company is implementing a number of large-scale investment projects in its poultry and pork divisions. In its pork division, it has completed the construction of modern production facilities in Lipetsk, Tambov and Voronezh regions. The commissioning of the new facilities will allow the production capacity of the group to reach 180,000 tonnes of live weight per year.
Cherkizovo Group is the largest meat manufacturer in Russia, with 2011 revenues of circa $1.5 bn. It is also one of the top three companies serving Russia’s poultry, pork and meat processing markets.