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Russia: Duma approves amendments to communications law Print E-mail
Wednesday, 18 October 2006
Russia's State Duma, the lower house of parliament, approved amendments to the law on communications as it pertains to telecommunications operators' payments to the Universal Service Fund (USF).

The amendments stipulate the tax base that is to be used to calculate operators' contributions to the fund. The portion of operators' revenue from interconnection and traffic routing services are excluded from USF contribution calculations. The amendments also set the share of revenues that are to be transferred to the fund.

Currently both issues are regulated by a government ruling approved in April 2005. That ruling has required operators to pay 1.2% of their revenues to the fund. The payments are made from the difference between the total revenue and revenue from interconnection and traffic routing services. Value-added tax (VAT) is also excluded from the difference.

The amendments to the law on communications will take effect on January 1, 2007. To become law, an amendment must be approved by the State Duma, the Federation Council and then be signed by the president.

The operators started making payments to the fund this year. The fund was established in order to finance the government's program aimed at providing services in rural and unprofitable areas, envisaging installation of public payphones and public Internet access points in all villages with populations of more than 500 people.

Source: Prime-Tass - WDR/Intelecon Regulatory News