Tax deduction for the development of vineyards in Dagestan may be extended until 2026

Economic Development Minister Maxim Reshetnikov proposed extending the tax deduction for entrepreneurs who develop vineyards in Dagestan for three years. Russian President Vladimir Putin supported this idea. This proposal was discussed during a meeting on the development of tourism in the North Caucasus.

“Of course, I support the joint proposal of the Ministry of Economic Development and the head of the Republic of Dagestan. We are talking about how to save for the period 2024-2026. an increased coefficient for applying the deduction and the amount of excise duty, if the grapes are used for the production of appropriate drinks using full-cycle technology,” the head of state said (cit. by Interfax).

Putin also stressed that producers of wine products will have to assume obligations and direct funds received from the state for the development of the industry – the laying of new vineyards and the development of the material and technical base.

According to Reshetnikov, the extension of the tax deduction for another three years will lead to the emergence of 1,000 hectares of new vineyards, the emergence of 9,500 seasonal jobs and the development of gastro-tourism in Dagestan. As part of this proposal, the government of the republic will invest almost 6 billion rubles. in the expansion of vineyards and in equipment for its processing.

In early March, Rosalkogolregulirovanie reported that since the beginning of 2023, the production of grape wine in Russia has grown by 10.2% compared to January-February 2022, amounting to 3.4 million decalitres (dal). Later, Roskachestvo reported that the share of Russian wine in the domestic market by 2023 reached 55%.