The secret appeal of the business to the government the Industry is on the verge of collapse

Caused by a coronavirus pandemic, the economic crisis is still just gaining momentum, but the main victims of it sector of the business is already known. Among them, of course, services, catering, non-food trade. As it became known “MK”, these industries through the Ministry of industry appealed to the Prime Minister Mishustin with a letter, offering to take emergency measures to support these industries. Otherwise, according to the authors, these areas will collapse, which inevitably will hit millions of ordinary consumers – even when the epidemic will be left behind.

According to “MK”, a number of public associations of small and medium business “OPORA Russia”, Association of retail trade companies, Association of companies of Internet trade, the national Association of cooks, the Russian Council of shopping centers and a number of others through the Ministry of industry and trade sent a letter to the Prime Minister. They ask to urgently take additional measures of support of sphere of services, non-food trade and public catering in the conditions of coronavirus in addition to those already announced by President Putin.

the Representatives of these sectors are sounding the alarm: their business by virtue of the authorities ‘ decisions on the fight against the pandemic are virtually zero. The drop in turnover of restaurants, bars, cafes, canteens, food stores, shopping malls during the last week of the quarantine was 80%. The authors argue that the impact of the decline in consumption, which last, according to their estimates, at least six months, will lead to inevitable financial collapse of the spheres of the non-food trade, catering, consumer services. Enterprise named sectors have already reduced at least 20% of its staff, and this is only the beginning. As for taxes, when you called the rpm drop they’re just not paid to the fact and no amount of tax holidays the business will not save – it is waiting for a massive failure. So, when the epidemic will end, people simply have nowhere to eat and nowhere to go shopping.

the Main thing I ask for in the circumstances, the representatives of these business areas the government: give them the opportunity to “stand in pause”, but not die. What do I need? Of course, first and foremost, tax incentives: business requests to cancel for six months calculation of VAT, profit tax, personal income tax, other fiscal charges and already counted earlier – to give respite for the same period.

the authors of the address ask to give the right to employers to send their employees on forced leave for a period up to 6 months. Despite the fact that 80% of the salary for that period dismissed the state paid. You need to pull out the affected industry and tightened credit loop. For this purpose the Central Bank to develop measures of preferential refinancing credits, to provide business vacation credit, and giving up all kinds of fines and penalties for late payment. Especially, these measures are relevant for large shopping centres, of which about 1,000: they mostly were built with borrowed money and now most are in akreditovano condition.

According to the authors, it is very important not to break already established in these sectors of the production chain, which requires the provision of “rent Amnesty”. We are talking about banning the termination of the existing lease, except by agreement of the parties.

Well, another important proposed measure: to impose a moratorium on all options for additional regulation of food service establishments, neprodovolstvennyh trade and service industries. In particular, to postpone until better times resonant of the decision on introduction of ecological and recycling collection, and the establishment of the Russian software for electronics and home appliances.

Pandemic and its associated regime of self-isolation will end sooner or later. People come out of their homes, rush for pending purchases, will fill the shopping centers, going back to the restaurants, cafes, canteens…That’s just a few months later it may happen that you will have nowhere to go and all doors are closed. According to our data, in the letter to the Prime Minister is not the price those measures, which requests the business of the government. But whatever it was, obviously to restore the service sector, catering and food trade from scratch the government will cost far more.