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ArticleName Rental management and tax administration as factors of investment attractiveness of peat industry production
DOI 10.17580/gzh.2019.05.08
ArticleAuthor Aleksandrov G. A., Yablonev A. L.

Tver State Technical University, Tver, Russia:

G. A. Aleksandrov, Professor, Doctor of Economic Sciences,
A. L. Yablonev, Professor, Doctor of Economic Sciences


The authors justify the economic mechanism of subsoil use, providing motivation and incentives for investment in extractive industries, based on the principle of combination of rent regulation and tax administration. This principle is a prerequisite for enhancing the investment attractiveness of extractive industries, without which it is impossible, in particular, the task of revival of the peat industry in Russia. Attention is drawn to the fact that modern approaches and methods of subsoil use regulation are predominantly fiscal nature, torn from its objective basis—rental relations, and do not ensure the achievement of consensus in the interests of businessmen—subsoil users and the state—owner of mineral reserves. Proposals for the establishment of substantiated economic mechanism which includes, firstly, rental regulation, as reflected in the establishment of the respective order, shapes, sizes and dates of the alienation of incremental profits in the form of rent (first and second order) and, secondly, tax administration business income, i.e. share of profit kept by a businessman after exemption of rent money. It means that all businessmen in different industries, including mineral mining, by definition should be in equal economic (taxation) conditions.
This article is published in a discussion order.

keywords Subsoil using, subsurface area owner, peat industry, attractiveness, natural rent, rent relations, profit, business income, rent regulation, tax administration

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