MOSCOW, July 3 (RAPSI) – A bill on exemption of people exercising the right to mortgage holidays from income taxes was signed by President of Russia Vladimir Putin on Wednesday, according to the official website of legal information.

According to the Tax Code, mortgage holiday is a financial benefit as a taxpayer saves on interest on bank funds. However, such revenue is subject to maximum income tax rate totaling to 35% that contradicts the concept note of the presidential instruction concerning mortgage holidays when a borrower must be exempt from all payments, according to an explanatory note to the legislative initiative. The bill has been drafted to improve the situation.

Putin signed a bill on mortgage holidays for citizens found themselves in a tough life situation into law on May 1. It will come into force on July 31.