Moscow government has assigned a special status to Renault Russia plant

Moscow government has assigned a special status to Renault Russia plant, which will enable the company to receive tax benefits until 2020, as stated by the investment and industrial policy department of the capital city.

Renault plant in Moscow has received the status of “manufacturer of vehicles operating in the capital“, as stated in the report. 

“The benefits Renault Russia will receive due to its new status will significantly relieve the total tax burden on the company, the income tax will go down to 12.5% from 17% and the property tax rate will be set as 0%” – according to the head of the department Alexander Prokhorov, as quoted by the press service. 

According to the press service, the company will make a serious investment in development, increase revenues and exports and employ more staff. 

“The company will launch the full-cycle production of another new automobile model in 2019-2020, modernise the capacity of the plant in the capital city to improve performance and increase the number of manufactured vehicles and continue with the implementation of the project to create and utilise self-driving vehicles for innovative automated production – according to the report. 

The factory plans to start the serial production of the new models of Renault Arkana. 

The contemporary history of Renault in Russia starts from 1998, with the establishment of Avtoframos, the joint venture of Renault Group and Moscow city administration. Renault has become the sole owner of the plant in 2012. Avtoframos was renamed as Renault Russia in July 2014.

Source: RusAutoNews.Com