Vladimir Putin proposed introducing vacations in consumer and mortgage loans for Russians, who found themselves in a difficult life situation due to the influence of coronavirus on the economy. The head of state came up with such an initiative on Wednesday, March 25, while addressing citizens.

“It is clear that with a sharp reduction in income, it is difficult or simply impossible to repay debt in the previous regime. I propose to provide holidays for both consumer and mortgage loans. If a person has found himself in a difficult life situation, namely, if his income has sharply decreased by more than 30%, then he should have the right to temporarily suspend servicing his debt and prolong it. Of course, without any penalties, ”the president emphasized.

He also called on the Bank of Russia to provide a similar mechanism for the extension of loans for individual entrepreneurs.

“If repayment of a debt due to objective reasons is in principle impossible, then in this case a citizen should not get into a dead end, become a hostage to the claims of creditors. Bankruptcy proceedings should be feasible and not burdensome, ”Putin added.

At the same time, the president ordered a postponement for the next six months for bank loans for small and medium-sized businesses, as well as microenterprises. According to him, in the current conditions, companies are faced with a reduction in orders and a decrease in revenue. Thus, the authorities consider it necessary to help enterprises continue their sustainable work and retain their employees.

“Our most important task, I appeal to all employers now, is to ensure stability in the labor market and prevent a surge in unemployment,” the Russian leader said.

According to him, the state will assist business in solving this problem. So, Vladimir Putin instructed to give small and medium-sized businesses a deferral of all taxes except VAT for six months.

“I propose for those enterprises, for those industries that are most affected in the current difficult situation, to provide the following support measures: small and medium-sized enterprises need to be granted an extension of all taxes, except VAT, for the next six months, and for micro-enterprises, except deferrals of taxes, also give deferral of insurance contributions to social funds, ”the president said.

He also proposed a long-term reduction in insurance premiums for small and medium-sized businesses from 30% to 15%. According to the head of state, such a decision should stimulate employers to increase salaries for employees.

The announced measures will allow Russian business to compensate for losses incurred from the coronavirus, as well as to avoid massive layoffs of employees. This point of view is held by Pavel Sigal, First Vice-President of the All-Russian public organization of small and medium-sized enterprises “Support of Russia”.

“The voiced proposals are now needed: against the backdrop of a rapid decline in demand due to the coronavirus epidemic, small and medium-sized businesses may lose up to 3 million entrepreneurs. After all, the question of paying rent and taxes, salaries and sick leaves has not been canceled - but where will the company get the money if there is no revenue? Against this background, a deferral of tax payments seems logical and necessary. Governments in other countries are doing the same thing now, ”Segal told RT.

According to the expert, the proposed provision of mortgage vacations to ordinary Russians and entrepreneurs will also reduce the negative impact of coronavirus on the economy. First of all, the initiative will support workers in the services and trade sectors.

“People go to quarantine, someone may lose their jobs. This is especially true for representatives of the tourism industry, restaurant business and trade - they are already being reduced. In such circumstances, you need to give people time to find a source of income, ”added Pavel Sigal.

During his address, Vladimir Putin also said that all social benefits and benefits will be automatically renewed for six months without the need for certificates. At the same time, the volume of unemployment benefits is planned to be increased from 8 thousand to 12 thousand rubles.

Help for the budget

According to experts interviewed by RT, the implementation by the government and the Central Bank of presidential instructions can lead to a noticeable increase in budget expenditures. Between the authorities also developed a package of measures to reimburse the spending of the treasury.

In particular, Vladimir Putin proposed introducing a 13% tax on income from deposits and investments in securities worth more than 1 million rubles. In addition, the president ordered to increase the tax on the transfer of dividends and interest to foreign accounts.

“All payments of income in the form of interest and dividends that go from Russia abroad to offshore jurisdictions should be taxed with adequate tax. Now two-thirds of such funds, but in fact it’s the income of specific individuals, as a result of various types of so-called optimization schemes are taxed at only 2%, ”Putin said.

According to him, the corresponding figure will be increased to 15%. As Putin emphasized, this will require adjustment of double taxation agreements with a number of countries, and asked the government to organize such work.

“In general, no one will suffer from the proposed tax increase, with the exception of the richest. But even in this case, it’s not about loss, but about lost profit, ”Natalya Milchakova, deputy head of Alpari’s information and analytical center, explained in a conversation with RT.

At the same time, the announced measures will help curb the growth of the budget deficit. About this RT told the analyst of the FINAM Group Alexei Korenev.

“The tax on income from securities and deposits compensates budget expenditures for other items. Obviously, banks will suffer losses due to credit holidays and will need the help of the state. The same thing with an increase in unemployment benefits - additional budget expenses will be covered by the introduction of a tax on income from deposits, as well as on dividends that go to other states. These taxes can be a significant help to the budget, ”concluded Korenev.