Russian hotels declared default on taxes

The reason for the appeal was the plight of hotels during the coronavirus pandemic.

An appeal to the Prime Minister of the Russian Federation Mikhail Mishustin with a request to introduce additional tax deferrals and develop support measures for the hotel industry. Signed by representatives of the organizations "Support of Russia", "Business Russia", the Russian Union of Industrialists and Entrepreneurs (RSPP), the Federation of Restaurateurs and Hoteliers. They were joined by the Chamber of Commerce and Industry (CCI) of the Russian Federation, the Russian Union of Travel Industry, the Russian Hotel Association and the Association of Hotels in Kazan and the Republic of Tatarstan.

As finanz.ru notes , in the second half of October, hotel occupancy in many regions of the country dropped to 30%, and in November-December this figure will drop to 3-7%.

"Hoteliers are recording daily cancellations of bookings due to news of an increase in the number of people infected with the coronavirus", - said in the message.

Due to the restrictions imposed on holding mass events in Russia, hoteliers have lost up to 60% of their income compared to last year. At the same time, no one removed the obligation to pay taxes from hotel owners. During the fourth quarter of this year, representatives of the hospitality sector will have to pay large amounts of taxes and return loans issued at 0% or 2%.

The authors of the appeal asked the Prime Minister for new deferrals for corporate property tax and land tax until December 31, 2021. They consider it necessary to write off all income tax payments for the industry enterprises in the third and fourth quarters of 2020, as well as provide a deferral for income tax for 2021. Hoteliers are asking to extend the concessional lending program until the end of this year and for the whole of 2021 for enterprises in the industry, as well as help with the purchase of personal protective equipment until the end of 2020.

As previously reported, in connection with a new rise in the incidence of coronavirus in many regions, on the recommendations of Rospotrebnadzor, anti-epidemic measures are being tightened since October 28. The holding of mass events was limited, a second quarantine was introduced for chronic patients and retirees, the heads of regions, depending on the severity of the situation, were given the right to introduce additional restrictive measures.

For several weeks now, Russia has been breaking anti-records for the number of cases and deaths from coronavirus every day. In some cities, the situation has worsened so much that patients with coronavirus lie right on the stairs, and morgues cannot cope with the increased load, and the bodies have to be dumped on the floor.