☝️ Government easing of quarantine “catches up” with the spontaneous process of getting out of it
☝️ The economic model of people’s behavior will change
☝️ Tax conditions may change significantly
☝️ IKEA is already on our doorstep
☝️ Italian furniture at a standstill
Everything that happened last week in Ukraine and the world and that is relevant for the furniture designer, read in our digest:
1. Last week near the Cabinet of Ministers businessmen organized the action “Quarantine kills”. They demanded that small and medium-sized businesses be allowed to work. According to them, the real threat to Ukraine is not so much the coronavirus as the consequences of quarantine restrictions for the economy. The government itself understands this well, so it resorted to partial easing, the first stage of which begins today. However, these relaxations actually “catch up” with the spontaneous process of self-exit from the quarantine of small businesses and self-employed entrepreneurs.
2. “Consumers are no longer buying durable goods and have started to save more,” said IMF spokesman Vladislav Rashkovan.
Data from China showed that in the first weeks of February, car sales fell by 92%, international tourism fell by 70%. Similar figures are recorded in Europe.
People will definitely care more about health, prevention, diagnosis. Views on teleworking are changing, and this will greatly affect the market for and demand for offices.
If the crisis lasts for a quarter and we are able to return to normal life, this short-term loss will be compensated by the governments of the countries by increasing the debt, which is planned for many years. And still it is necessary to understand that someone’s business, unfortunately, will stop. Doctors and scientists looking for an antiviral vaccine will come to the fore – they will be taken care of first.
You can flood the economy with as much money as you want, but today it all depends on epidemiologists, on doctors who must save more people and find the necessary vaccination mechanisms that can overcome the virus. If this happens, the economy will begin to recover.
3. We can predict that the end of quarantine will be the beginning of a new reality for both people and businesses. In particular, tax conditions may change significantly, predicts expert in tax and legal practice Igor Chufarov.
However, the provision of tax benefits will inevitably lead to a decrease in state budget revenues, an increase in the deficit and public debt. Governments are already thinking about how they will cover these losses. Therefore, after the quarantine, tax discipline should be expected to be strengthened and additional measures taken to combat tax evasion. The progressive component of the tax system will be strengthened, a minimum income tax and special taxes such as the digital tax or wealth tax will be introduced.
4. The lease agreement for the furniture retailer IKEA Ukraine with the Blockbuster Mall in Kyiv has already been signed, but due to the coronavirus epidemic, the opening date of the IKEA store has not been determined yet. This was announced by the coordinator of business clients of IKEA Ukraine Igor Ius. But, according to him, in the near future “IKEA Ukraine” plans to launch online sales, because, they say, “IKEA has realized that the Ukrainian buyer is very flexible and more suited to online shopping than directly in a traditional store.”
5. All Italian furniture factories are still completely closed. But in general, the results of the year such a simple may not have a drastic effect. All European furniture factories have the concept of “vacation”, and they are always in August. Furniture manufacturers, who are now quarantined, have actually postponed their summer vacation to spring, hoping to make up for lost time in the summer, during the traditional holiday season.