Russia’s Finance Ministry has unveiled a draft federal budget for the years 2027–2029, introducing several tax proposals designed to bolster government revenues amid ongoing fiscal challenges. The draft suggests a progressive tax structure on passive personal income, with rates ranging from 13% to 22%. This measure targets income categories such as interest from bank deposits, dividends, real estate sales, and securities trading, potentially impacting around 4 million higher-income citizens. Notably, military personnel will be exempt from these increased taxes on passive income.
Additionally, the budget draft proposes a 35% tax on certain dividend payments to non-resident “Type C” accounts and a 15% tax on passive earnings of mutual investment funds. To address cross-border e-commerce, a 22% value-added tax is suggested for online purchases, accompanied by a flat customs fee of 100 rubles for international packages valued below €200.
The draft also targets the mining and metals sectors, proposing a 30% tax on excess earnings tied to surges in global commodity prices. These measures reflect Russia’s effort to navigate financial pressures exacerbated by declining energy revenues and sustained government spending.
Despite the revenue-generating focus, the Finance Ministry emphasized that the budget would continue prioritizing defense and security, alongside fulfilling social commitments and supporting military personnel and their families. The projected federal deficit stands at approximately 2% of GDP for 2027, based on an oil price assumption of $50 per barrel.
These proposals emerge as Russia contends with persistent fiscal strains, seeking to stabilize its finances while maintaining key national priorities. The budget draft now awaits further consideration and approval within the government framework.
