On July 1 — we vote!

Putin’s address on income tax, child benefits, and the constitutional plebiscite, in brief

Three months have passed since the first address. Usually a quarter flies by quickly, but now everyone has a different sense of time. I want to thank you for the dignity with which you, citizens of Russia, have gone through this test. In some regions the situation remains difficult, but we already have a rapid response mechanism. “No one will ever be left in need. All Russia will definitely come to the rescue. If necessary, we will meet any challenge.”

The state’s holy duty is to support doctors, provide them with everything they need. There were flaws in the payments for doctors, but they have been eliminated. Additional payments for doctors are being extended through July and August. Payments for social workers are being extended until mid-September.

The other important question is assistance for children with rare disease and their families. As of January 1, 2021, personal income tax needs to be raised from 13 percent to 15 percent, for those who earn more than 5 million rubles per year (approximately $73,000). The increased tax only [applies] to the amount of income exceeding 5 million rubles. Revenues from this reform — up to 60 billion rubles per year (more than $874 million) — will be directed towards treatment for children with rare diseases.

In July, there will be an additional payment of 10,000 rubles for each child under the age of 16 years old (approximately $145). New applications are not required. The remaining payments for children will also be issued automatically. Increased unemployment benefits and other economic support measures will apply in July and August.

The ruble’s exchange rate has not collapsed, the learning process in schools and universities did not stop. Planting season was carried out! The unemployment rate rose, but it could be worse. We need to restore the economy quickly and bring it to a pre-crisis level. We will extend the preferential mortgage program for new housing at a cost of up to 6 million rubles in large cities (more than $87,000), including up to 12 million rubles in Moscow ($174,600). Another 100 billion rubles (approximately $1.45 billion) [will be allocated] for the preferential loan program at a 2 percent [interest rate] for companies in affected sectors. All regions will have a system for self-employed people as of July 1. In the IT sector, a tax maneuver will provide an indefinite reduction of social security rates to 7.6 percent, and of profit tax to 3 percent. The tax on controlled companies will be fixed at 5 million rubles per year (approximately $73,000) without additional reporting. Another 100 billion rubles will be directed towards federal subjects, and the same amount [will be spent] on updating road networks. In the new budget cycle, there will be increased spending on healthcare and education.

On July 1, we are voting on amendments to Russia’s Constitution. “Of course, they will come into force only, [as] I have already said many times, if citizens support them.” The epidemic is not over yet. “We still have yet to squeeze out, to crush this infection. But life finds a way and we’re getting back on track.”

Cover photo: Alexey Nikolsky / Pool / TASS / Scanpix / LETA