Putin called for a deferment of all taxes for small and medium-sized businesses

Russian President Vladimir Putin proposed measures to support small, medium-sized businesses and micro-enterprises. He stated this during an address to Russians regarding the coronavirus.

He called on employers to ensure stability in the labor market and prevent a surge in unemployment. As measures of government support, he proposed providing a deferment of all taxes, with the exception of VAT, for the next six months for small and medium-sized businesses. For micro-enterprises, in addition to such a deferment on taxes, there will also be a deferment on insurance contributions to social funds, Putin added.

“As for bank loans, small and medium-sized businesses and micro-enterprises that find themselves in a difficult situation should also receive a deferment on loans for the next six months. In general, I ask the government and the Central Bank to propose and take additional measures to ensure sustainable lending to the real sector, including the provision of state guarantees and subsidies,” he concluded.

Putin also proposed introducing a six-month moratorium on filing applications from creditors for bankruptcy of companies and collection of debts and fines.

Updated at 5:26 p.m. The Federal Tax Service of Russia has suspended blocking accounts in case of arrears in paying taxes, fees and insurance premiums for small and medium-sized businesses due to coronavirus until May 1, 2020, TASS reports.

In the same address, Putin proposed to provide holidays on consumer and mortgage loans without penalties, declared the week of March 30 a non-working week, proposed to postpone the nationwide vote on amendments to the Constitution, and also announced that all social benefits and benefits that citizens are entitled to in the next six months , should be renewed automatically.