Tatarstan SMEs trading in excisable goods will also be able to apply for state support

The corresponding decision was made on June 8, 2020 under the Federal Law166, which, among other things, will open up the possibility of providing state support to SMEs that carry out, in addition to their main activities, production (sale) of excisable goods and mining (sale) of minerals.

The law provides for the removal of restrictions on provision of state support to SMEs, which, in addition to their main activities, also produce and sell excisable goods or extract minerals, by decision of the Government of the Russian Federation. Prior to the adoption of the relevant amendments, the Federal Law on Development of SMEs and the Budget Code of the Russian Federation provided for a direct ban on providing support to those entrepreneurs who sell alcohol products, which made it impossible for many restaurants and hotels to receive state support, despite attributing them to the affected sectors of the economy. Now, these changes are made at the discretion of the Government of the Russian Federation and, if an appropriate decision is made, such entrepreneurs are entitled to take advantage of the available financial support.

In addition, the law proposes to allow representatives of small and medium-sized businesses, as well as individual entrepreneurs, who did not submit tax reports for 2018 on time, as a result of which the companies were not included in the unified register of SMEs, to the financing programs. Such enterprises and individual entrepreneurs will be included in the register, provided that the necessary information for 2018 is provided no later than June 30, 2020.

According to the law, changes have also occurred regarding the issues of leasing of state-owned or municipal property by SMEs. One of the articles of the Law affects the relationship of lease with the right to purchase property between the buyer-subject of the SME and the state or municipal authority. Now, in the event of an emergency, the seller is obliged to conclude an additional agreement to the contract of sale within 30 days from the date of the buyer’s appeal, which provides for deferred payment for a period of six to twelve months. Application of penalties, as well as installation of any additional payments under the Law is not allowed.