The key measures that President Putin mentioned in his speech on the coronavirus crisis were the following:
- A week-long stay at home order for the population beginning this weekend except for essential services
- A substantial rise in unemployment insurance payments to those laid off due to the virus and its impact on the economy. These will rise from 8,000 rubles monthly to the legal minimum income (poverty level) of 19,000 rubles monthly (223 euros at today’s exchange rate)
- Speeding up the allocations of new social benefits to families with children announced during his state of the nation address in mid-January as well as accelerated payment of bonuses to veterans of WWII
- A moratorium on personal credit and mortgage credit repayments during this crisis
- Credits to be made available to small and medium businesses
- A temporary halt to bringing bankruptcy proceedings against businesses in default
Then, with special flourish, Mr. Putin used the impending crisis to fix several unpopular tax loopholes favoring the very rich, so that the proceeds of the new taxes may be used to offset some of the costs of the social protection measures now being introduced for the great majority of the working population, for families, etc. To name one such abuse, he is calling for all remittances of dividends and the like by physical persons to offshore ‘tax havens’ where they go untaxed, now to be subjected to a 15% income tax in Russia. The double taxation treaties with those tax haven countries allowing this abuse will be amended accordingly.
