The increase in tax rates on unused real estate in the Dvina region has proven effective

The increase in tax rates on unused real estate in the Vitebsk region has proven effective over the past two years, ensuring additional budget revenues and an actual increase in the number of properties put into economic circulation, as reported to a BELTA correspondent by Mikhail Pavlyuchkov, director of the Vitebskoblimushchestvo fund.

Local authorities have had the right to increase real estate tax rates since 2014 (and for real estate and land since 2016). The Vitebsk Regional Council of Deputies has maximally exercised this right: for two years, rates increased by 5 times (the upper limit) were in effect. "In 2014, 490 properties were included in the list of unused or inefficiently used capital structures in the region, for which the tax rate was increased, with 72% being privately owned. As a result, by the beginning of the next year, 71 properties were put into economic circulation and excluded from the list, and the consolidated budget of the region received an additional Br5.5 billion. In 2015, there were already 622 properties on the list, still predominantly privately owned. However, more buildings and structures were successfully excluded – 88. The budget received Br4 billion," the fund explained.

Thus, the adopted economic measure had an impact, especially on private owners, forcing them to more quickly decide the fate of their vacant premises to avoid incurring additional expenses due to this ballast.

At the next session of the regional council, deputies agreed to increase property tax rates on unused (inefficiently used) capital structures (buildings, structures), their parts by 10 times. Such a right is provided for by Article 188 of the Tax Code, the amendments to which came into force on January 1, 2016. The list of unused and inefficiently used property for this year includes 787 objects, of which 596 are privately owned. "We need to do everything possible to ensure that such property brings benefits and income, does not become an object of danger or fire. Therefore, the state is taking measures to restore order. The most effective and civilized measures are economic. They are designed to stimulate taxpayers to efficiently use capital structures, as well as to involve this property in economic circulation," emphasized Mikhail Pavlyuchkov.

Ekaterina Knyazeva - BELTA