“Cherkizovo” Group welcomes the establishment of a zero tax rate on profits for agricultural producers, the company said a in statement.
Оn 3rd October 2012, Russian President Vladimir Putin signed the federal law "On Amendments to the Tax Code of the Russian Federation and the Annulment of Certain Provisions of Legislative Acts of the Russian Federation." The law has set zero tax rates for agricultural producers on profits in perpetuity.
"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."