Posted on February 22, 2019

Putin Promises Hard Cash, Tax Breaks and Mortgage Relief for Families with More Children

David Reid, CNBC, February 20, 2019

Russian President Vladimir Putin has promised tax breaks, mortgage relief and hard cash to support Russian families who produce more children.

Putin used his televised State of the Nation address on Wednesday to outline several measures he claimed would improve living conditions. Focusing on families, the leader said the first way to improve incomes was to reduce to the tax burden.

“The principle should be very simple—the more children you have the less tax you should pay,” said Putin.

The Russian strongman told the audience that he wanted to remove 5 square meters of taxable area from a family’s residential property for every child that they have. Land ownership up to 600 square meters would also be completely free of taxes.

Families with three or more children will also get one-time 450,000 rubles ($6,840) payment to help trim their mortgages.

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The Russian leader said there had been low uptake as the subsidy only lasted a few years. To applause, he proposed the relief should now be extended to the mortgage’s duration.

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{snip} A promise to end the shortage of childcare at nurseries by 2021 was also made.

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