Call to extend NGOs’ tax privileges

The Federation Council hears calls to extend the range of NGO tax privileges

Moscow, 12.01.2016

The Deputy Speaker of the Federation Council, Galina Karelova, stated that the number of non-profit organisations included in the social services system remains low and called for the provision of additional support to them.

Although socially-orientated NGOs work effectively, their share in the provision of social assistance remains negligible,Ā saidĀ Karelova. The Moscow Public Relations Council reports that in 2014 more than two million people received social services from NGOs. However, Karelova believes that current measures for the inclusion of the third sectorĀ in the social services system are insufficient, with socially-orientated NGOs active in only 37 of Russiaā€™s 85 regions. ā€œTo encourage more active NGO involvement in the social sphere, existing mechanisms, including tax privileges, should be improvedā€, she argues.

Earlier in the Federation CouncilĀ calls were made for the transfer of some of the functions of local government to non-profit organisations. Existing regional experience shows that the involvement of NGOs results not only in higher quality services, but also in more effective use of budgetary funds. President PutinĀ instructed that NGOs must be given access to budgetary resources ā€˜allocated for the provision of social services, with the aim of transferring them up to 10% of funds allocated for the implementation of programmes by federal subjects and municipalitiesā€.

Author:Ā Georgii Ivanushkin

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