Bashkortostan exempts farmers from paying taxes for the period of 2024-2026 in order to preserve jobs and support development.

In the Republic of Bashkortostan, farmers have been exempted from paying the Unified Agricultural Tax (UAT) for the period from 2024 to 2026. During a plenary session on February 21, deputies of the State Assembly adopted relevant amendments to local legislation.

"This law establishes a zero tax rate for the Unified Agricultural Tax in the territory of the Republic of Bashkortostan. The preferential tax regime will apply to agricultural producers on the condition that the number of employees does not decrease by more than 10% compared to the previous tax period. The tax break will be valid from 2024 to 2026," noted the speaker of the State Assembly Konstantin Tolkachev.

Regions can establish different tax rates for the agricultural tax ranging from 0% to 6%.

In Bashkortostan, the zero rate for the Unified Agricultural Tax was in effect from January 2021 until the end of December 2023. More than 500 farmers took advantage of this benefit, saving 165 million rubles, which were used to purchase equipment and fuel.

Marina Petrova, Deputy Chairman of the Committee of the Moscow Chamber of Commerce and Industry for the Development of the Agro-Industrial Complex and CEO of the consulting company Petrova 5 Consulting, noted that Bashkortostan is a leader in its approaches to working with farmers in this case.

"The decision to zero out the UAT is not only correct but also timely. It should be noted that over the next two years, the agro-industrial complex will have to overcome a number of difficulties related to sanctions pressure and, as a result, the increase in production costs. Obtaining state support for small agricultural producers is quite challenging. Starting in 2024, dairy farms with less than 1000 heads will not be able to offset capital expenditures related to construction and modernization of facilities. There are also changes in subsidizing interest rates for financing farmers, as well as difficulties in obtaining short-term loans. Bashkortostan is aware of the current situation and is taking active measures by zeroing out the agricultural tax. For agricultural producers, this is an opportunity to preserve jobs, reduce cost increases, and stay in the market to develop in the future. Preserving the existing potential of farmers is very important at the moment," says the expert.

The Unified Agriculture Tax (UAT) is a special tax regime applied to producers of agricultural, forestry, fishery, and other products. Both agricultural organizations and individual entrepreneurs can act as taxpayers. For companies, the UAT replaces corporate income tax and property tax, and for entrepreneurs - personal income tax, individual property tax, and VAT.