Russia’s Finance Ministry has unveiled a draft federal budget for 2027–2029, proposing significant tax increases aimed at bolstering government revenue amid persistent fiscal challenges. The draft introduces a progressive tax on passive personal income, ranging from 13% to 22%, which would apply to earnings from bank deposit interest, dividends, real estate sales, and securities trading. This change is anticipated to impact approximately 4 million higher-income Russians, though military personnel would be exempt from these higher rates.
The budget proposal also suggests taxing certain dividend payments to non-resident “Type C” accounts at 35%, alongside a 15% tax on passive earnings from mutual investment funds. In addition, cross-border online purchases would incur a 22% value-added tax, supplemented by a flat customs fee of 100 rubles for international packages valued under €200.
Industries such as mining and metals may face a new 30% tax on excess earnings, linked to elevated global commodity prices. These measures come as the country grapples with reduced energy revenues due to lower prices, while government spending remains high.
The Finance Ministry emphasizes that the budget will prioritize defense and security, while also fulfilling social commitments and providing support for military personnel and their families. The draft projects a federal deficit of about 2% of GDP in 2027, assuming an oil price of $50 per barrel.
This proposal underscores the ongoing pressure on Russia’s public finances as the government seeks to navigate economic constraints and sustain its financial obligations in a challenging global environment.