Business people warn Russia could be thrown back to 19th century

The coronavirus epidemic has hit retail businesses and catering whose turnover has dropped by 50% to 80%, according to a letter by representatives of the Retail Companies Association, the Association of Internet Commerce Companies, the Association of Small-Scale Commerce and the Opora Russia non-governmental organization for small and medium-sized businesses, addressed to the Russian Prime Minister.

Russia could be thrown back to the early 20th century or even the 19th century as the country’s consumer market may collapse. Business representatives are calling for urgent action.

Producers and representatives of trade and logistics need support, RBC reports. Tax concessions are among the necessary measures. Business representatives are proposing cancelling VAT for the entire crisis period and grant deferral on all incurred VAT payments. Similar relief measures are proposed for the profit tax. Additionally, business people are asking for a cancellation of the individual income tax, the property tax and several other taxes. Businesses are also asking for dropping rental fees.

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