Amid ongoing fiscal pressures, Russia’s Finance Ministry has submitted a draft federal budget for 2027–2029 proposing significant tax changes to bolster government revenue. The draft suggests a progressive tax rate on passive personal income ranging from 13% to 22%, targeting income from sources like bank deposit interest, dividends, real estate sales, and securities trading. This change is expected to impact approximately 4 million higher-income Russians, though military personnel would be exempt from these increased rates.
The proposed budget also includes a 35% tax on certain dividend payments transferred to non-resident “Type C” accounts and a 15% tax on the passive earnings of mutual investment funds. Additionally, cross-border online purchases could face a 22% value-added tax, coupled with a flat customs fee of 100 rubles for international packages valued below €200.
Further tax measures outlined in the draft target the mining and metals industries, which could see a 30% tax on excess earnings linked to higher global commodity prices. These proposals reflect the ministry’s strategy to address the fiscal constraints Russia faces, with energy revenues impacted by declining prices and government expenditures remaining high.
Despite the new tax proposals, the Finance Ministry emphasized that the budget will continue prioritizing defense and security, along with fulfilling social commitments and supporting military personnel and their families. The draft projects a federal deficit of about 2% of GDP for 2027, premised on an assumed oil price of $50 per barrel.