Russia’s Finance Ministry has put forward a draft federal budget for the years 2027 to 2029, featuring proposed tax increases to boost government revenue amidst ongoing fiscal challenges. The draft outlines a progressive tax rate ranging from 13% to 22% on passive personal income sources, including interest on bank deposits, dividends, real estate sales, and securities trading. This measure is expected to impact approximately 4 million high-income Russians, although military personnel will be exempt from the elevated tax on passive income.
The proposal further suggests a 35% tax on specific dividend payments directed to non-resident “Type C” accounts and a 15% tax on passive income from mutual investment funds. Additionally, cross-border online purchases would incur a 22% value-added tax, coupled with a flat customs fee of 100 rubles for international packages valued below €200. Companies in the mining and metals sectors could face a 30% tax on excessive earnings associated with higher global commodity prices.
The Finance Ministry emphasized that the budget will maintain its focus on defense and security while fulfilling social commitments and providing support to military personnel and their families. The proposed budget aims to address Russia’s fiscal pressures, exacerbated by lower energy revenues and sustained high government expenditure.
The draft budget anticipates a federal deficit of approximately 2% of GDP in 2027, based on an assumed oil price of $50 per barrel. These measures come as Russia continues to experience pressure on its public finances, necessitating adjustments to taxation and spending to stabilize the economic landscape.