The first Priority Social and Economic Development Area is created the Voronezh region
The Ministry of Economic Development of Russia approved an application for the creation of Priority Social and Economic Development Area (PSEDA) in the monocity Pavlovsk of the Voronezh Region. This will be the first in the history of our region.
The regional government applied for the creation of Priority Social and Economic Development Area in the Ministry of Economic Development of the Russian Federation. Agency worked with administration of the Pavlovsk district to develop documentation in September 2017.
Pavlovsk was chosen not accidentally as a site for a preferential economic zone. The status of a monotown was given to 4 municipalities of the Voronezh region: Pavlovsk, Semiluki, Rossosh and Elan-Kolenvsky. However , Pavlovsk is the most promising area for the creation of Priority Social and Economic Development Area at the moment. The regional government is also discussing the possibility of creating similar economic zones in other monotowns.
A special preferential taxation system is envisaged for residents of Priority Social and Economic Development Area. It is planned to establish a lower tax rate for corporate profit tax paid in the regional budget in the amount of no more than 5% within 5 tax periods and no more than 11% during the next 5 tax periods, starting from the year of the first profit
The new economic zone will operate for 10 years with the possibility of period extension. PSEDA will achieve several goals at once: overcoming mono-dependence, attracting investments and increasing the investment attractiveness of the region as a whole, creating new workplaces and improving the quality of life.