Russia’s Finance Ministry has unveiled a draft federal budget for the years 2027 to 2029, introducing a series of tax hikes aimed at bolstering government revenue amidst sustained fiscal challenges. Central to these proposals is a progressive tax rate ranging from 13% to 22% on passive personal income sources, including bank deposit interest, dividends, real estate sales, and securities trading. This measure is expected to impact approximately 4 million higher-income Russians, with military personnel notably exempt from these increased taxes on passive income.
Additionally, the draft budget proposes a 35% tax on specific dividend payments directed to non-resident “Type C” accounts and a 15% tax on passive earnings of mutual investment funds. In a move affecting cross-border commerce, the proposal includes a 22% value-added tax on online purchases from abroad, accompanied by a flat customs fee of 100 rubles for international packages valued below €200.
The finance ministry also targets the mining and metals sectors, suggesting a 30% tax on excess earnings linked to rising global commodity prices. These changes are part of broader efforts to address pressures on public finances exacerbated by declining energy revenues and sustained government spending.
The ministry emphasized that the budget would maintain a focus on defense and security, while also fulfilling social commitments and supporting military personnel and their families. This fiscal strategy is set against a backdrop of an anticipated federal deficit equivalent to about 2% of GDP in 2027, based on a projected oil price of $50 per barrel.