Russia is facing continued fiscal challenges and has proposed new tax measures in a draft federal budget for 2027–2029 as a response. The Finance Ministry aims to bolster government revenue through various tax hikes, primarily targeting higher-income individuals and certain types of income.
The proposal outlines 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 change is expected to impact around 4 million wealthier Russians, although military personnel will be exempt from these increased taxes on passive income.
Additionally, the draft suggests imposing a 35% tax on specific dividend payments transferred to non-resident “Type C” accounts and a 15% tax on the passive earnings of mutual investment funds. The plan also includes a 22% value-added tax on cross-border online purchases and a flat customs fee of 100 rubles for international packages valued below €200. Mining and metals companies could be subject to a 30% tax on excess profits driven by higher global commodity prices.
The Finance Ministry emphasizes that the budget will continue to prioritize defense and security, alongside maintaining social commitments and supporting military personnel and their families. The draft projects a federal deficit of approximately 2% of GDP in 2027, assuming an oil price of $50 per barrel.
This proposed budget comes amid ongoing pressure on Russia’s public finances, with energy revenues being impacted by lower global oil prices while government spending remains high. These new tax measures reflect an effort to address these fiscal pressures and adjust to the challenging economic environment.
