Amid continued pressure on public finances, Russia’s Finance Ministry has outlined a draft federal budget for 2027–2029, proposing new tax measures aimed at bolstering government revenue. The proposed budget seeks to address fiscal challenges by introducing a range of taxes on passive income and other financial activities.
Central to the proposal is a progressive tax rate ranging from 13% to 22% on passive personal income, which includes earnings from bank deposit interest, dividends, real estate sales, and securities trading. This measure is expected to impact approximately 4 million higher-income Russians, though military personnel would be exempt from the increased tax on passive income.
The draft also targets international financial transactions, suggesting a 35% tax on specific dividend payments made to non-resident “Type C” accounts and a 15% tax on passive earnings of mutual investment funds. In addition, cross-border online purchases would be subjected to a 22% value-added tax, coupled with a flat customs fee of 100 rubles for international packages valued under €200.
The mining and metals sectors could see a significant fiscal impact, as the draft proposes a 30% tax on excess earnings linked to elevated global commodity prices. These measures reflect the government’s efforts to secure revenue amid fluctuating energy prices and persistent high government spending.
Despite these changes, the Finance Ministry emphasizes that the budget will continue to prioritize defense and security, fulfilling social commitments and supporting military personnel and their families. The draft projects a federal deficit of about 2% of GDP in 2027, based on an assumed oil price of $50 per barrel.
This proposal by Russia’s Finance Ministry highlights the ongoing challenges faced by the country in managing its fiscal responsibilities while attempting to stabilize revenue streams. The budget reflects a strategic approach to handling economic pressures, with a focus on maintaining essential government functions and addressing the needs of military personnel.