In the Republic of Dagestan, the Government Act "On the estimation of the efficiency of fiscal and social
submitted tax relieves provided by the legislation of the Republic of Dagestan" dated 25.06.2008 # 207 was
adopted. In accordance with the mentioned Act, the region assigned the responsibility for assessment of the
efficiency of tax relieves established by regional law, to sectoral executive authorities. The Ministry of Economy
of the Republic of Dagestan coordinates the work in this direction and prepares a summary report based on the
materials submitted by sectoral executive authorities. The effect of the tax relieves granted at the federal level isvirtually not calculated in the Republic of Dagestan (except for the quantitative loss of the budget by certain
types of preferences calculated by the Office of the Federal Tax Service of the Russian Federation in the
Republic of Dagestan and reflected in the Tax Certificate of the region). This is despite the fact that, as the
survey showed, over 70% of the shortfall in tax revenues comes from the tax relieves established by federal law.
In general, the losses of the national budget of the Republic of Dagestan in connection with the provision of tax
relieves in recent years tend to increase. Thus, according to the Office of the Federal Tax Service of the Russian
Federation in the Republic of Dagestan, the shortfall in revenues of the republican budget of the Republic of
Dagestan due to provision of tax relieves in 2013, if compared to 2012, increased by 13.9%, including the
increase by 18.6% caused by the relieves granted in accordance with the Tax Code of the Russian Federation,
and the decrease by 26.5% caused by the relieves granted in accordance with the regulations of the Republic of
Dagestan. In this situation, it is necessary to calculate the budgetary losses caused not only by relieves granted
by the legal acts of subjects of the Russian Federation, but also by those granted by federal law.