Holiday week, monetary assist for affected & taxes for wealthy: Putin lays out coronavirus emergency plan


Russians will get every week of paid go away and a lift to advantages for these most in want, whereas the wealthiest should pay extra income taxes, the Russian president mentioned as he offered his plan to cope with the coronavirus.

Speaking in a televised handle on Wednesday, President Vladimir Putin introduced quite a few measures designed to assist the Russian individuals and the nationwide financial system amid the more and more critical menace of coronavirus within the nation. He mentioned there was no possible technique to hold the virus out, however that an environment friendly, coordinated effort to preempt and mitigate the harm will assist shield individuals from the worst outcomes.

Week-long vacation

One of the fast selections taken by the federal government was to declare subsequent week an extended nationwide vacation in Russia. Salaries for the times off will nonetheless be paid, Putin mentioned. This is anticipated to assist sluggish the unfold of the coronavirus.

The president warned towards underestimating the menace posed by the virus and mentioned everybody ought to act responsibly.

Please, don’t assume like individuals usually do: ‘This cannot touch me.’ It might contact anybody.

Constitution vote postponed

Russia will even postpone the nationwide vote on constitutional amendments, which is at the moment scheduled for April 22. The package deal of constitutional amendments was tabled by Russia’s president again in January and greenlit by legislators earlier this month.

Also on Putin pressured to delay key vote to reset presidential time period limits as a consequence of Covid-19

Benefits & frozen credit

A giant chunk of the measures introduced by Putin cope with varied advantages. The regular checks for eligibility shall be suspended for six months, whereas a few of the funds – like paid sick go away and unemployment funds – shall be given a lift.

Russians whose month-to-month incomes endure a pointy drop for no matter motive will be capable of ask for a suspension of funds on any credit they owe. Similar assist shall be given to small companies, which will even get tax breaks and safety from chapter to assist hold them afloat throughout the financial slowdown.

Also on Putin proposes mortgage & mortgage holidays, new funds for households with youngsters to sort out aftershocks of Covid-19

Taxing the wealthy

Wealthier people and massive corporations are anticipated to cowl a few of the price of the emergency measures, in accordance with Putin’s plan. Russians who’ve cash in financial institution accounts and have invested in equities over a sure threshold should pay revenue taxes on their revenues – this beforehand got here beneath an exemption.

The tax on company dividends paid to overseas jurisdictions will get a hike from two p.c to 13 p.c. Putin mentioned most of this cash goes on to particular person enterprise house owners, who keep away from paying due taxes in Russia this fashion.

“It will require changing our agreements with certain nations on avoiding double taxation,” Putin mentioned. “If our foreign partners do not accept our suggestion, Russia will withdraw from such agreements unilaterally.”

Brace for influence

Russia has up to now largely been spared by the Covid-19 pandemic. It at the moment has 658 circumstances of the coronavirus, and the nation was fast to implement sure essential measures – like proscribing worldwide travel – to maintain the illness in examine.

However, the variety of contaminated individuals has jumped by 163 in 24 hours, fueling considerations that an explosive development of optimistic exams might occur inside days.

The nationwide financial system can also be starting to expertise the impact of the worldwide financial slowdown. Russia got here to the disaster ready higher than many because of giant reserves and macroeconomic stability, but it surely nonetheless should brace itself to navigate by means of the storm.

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