Russian Govt to Consider Amendments to Communications Law

MOSCOW, Aug 2 (Prime-Tass) -- The Russian government plans to consider Thursday amendments to the law on communications with regard to telecommunications operators' payments to the so-called "universal services fund," the government's press service said in a press release Wednesday.

The amendments stipulate the tax base that should be used to calculate operators' contributions to the fund by excluding operators' revenue from interconnection and traffic routing services, the government said, adding that the amendments also set the share of revenues that should be transferred to the fund.

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

To become law, amendments must be approved by the State Duma in three readings, by the Federation Council in one reading and then be signed by the president.

The operators started making payments to the fund starting 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.

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Posted to the site on 2nd August 2006