The Governor of Leningrad region made a number of decisions to provide support for small and medium-sized business in special conditions applied for prevention of spread of coronavirus.
“Today there are several business sectors which have suffered from reduction of demand on their goods and services in conditions of coronavirus most of all. First of all, this is business which provides services in outbound tourism, leisure, food services, passenger transport, consumer services. We prepared a number of support measures for them which are being implemented at the regional level. We will also send suggestions to the Ministry of Economic Development of the Russian Federation which should be considered at the federal level,” said Alexander Drozdenko.
Suggested regional measures:
- to reduce tax rate under simplified tax system from 6% (of income) to 1% in the spheres of tourism, healthy lifestyle, leisure, food services, consumer services valid from 01.01.2020;
- to recommend local authorities to reduce the amount of unified tax on imputed income valid from 01.01.2020;
- to increase funds allocated for subsidizing small and medium-sized business in the most affected spheres (tourism, healthy lifestyle, leisure, food services, consumer services, some production facilities) in order to reimburse interest on current loans;
- to impose moratorium on payment of principal amount of a loan and interest on microloans by small and medium-sized business – borrowers of regional microcredit companies operating in tourism, healthy lifestyle, leisure, food services, consumer services;
- to supplement the Resolution of the Government of 13 March 2020 No. 117 with a regulation confirming that coronavirus is a force majeure clause. Penalties will not be charged, counterparties will not be allowed to recover damage during the period of force majeure;
- to impose moratorium for three months on rental payments under agreements on provision of state property of Leningrad region;
- to establish a hotline +7 (812) 309-46-88 on the basis of Entrepreneurship Support Fund of Leningrad Region for consultations of entrepreneurs concerning the attempted measures.
Suggestions of Leningrad region to the federal authorities:
- prolongation of tax regime for small and medium-sized business in the form of unified tax on imputed income up to 2024 for the period of implementation of the national project for small and medium-sized business;
- to appeal to the Ministry of Economic Development of the Russian Federation for allocation of funds from the federal budget for subsidizing small and medium-sized business in the most affected industries (tourism, healthy lifestyle, leisure, food services, consumer services) in order to reduce losses connected with suspension of operations;
- to approach to the Ministry of Industry and Trade of the Russian Federation with suggestion to interrupt the process of transition to obligatory product labelling.