A PROGRAM OF BUSINESS SUPPORT MAY BE EXTENDED UNTIL THE END OF 2021

The Commissioner for the Rights of Entrepreneurs Boris Titov appealed to the Government of the Russian Federation with a proposal to extend the previously introduced measures to support business. We are talking about credit vacations, tax deferral, as well as a moratorium on bankruptcy.

According to Titov, the measure is necessary, since many entrepreneurs are still in a difficult situation and are at risk of losing their business because of the debts.

A recent poll showed that 77% of respondents with a 50% probability may not withstand the re-introduction of restrictions and will be forced to close the enterprises.

At the same time, the key problem is the decline in consumer demand, which fell sharply in April and is gradually recovering by the fall. According to the data of the Business Ombudsman, 67% of companies had a drop in purchasing power. In such a situation, the risk of a sharp increase in the number of bankruptcies is high, said Titov.

In connection with the current situation, the Commissioner for the Rights of Entrepreneurs proposed to extend the anti-crisis measures until the end of 2021. This list may include tax deferrals for businesses not only from the affected industries, but also for companies the revenue of which decreased by more than 30% in the period of April-September 2020 compared to the last three months of 2019 and to the period of January-March 2020.