Russia’s Finance Ministry has unveiled a draft federal budget for 2027–2029, outlining new tax measures as part of its strategy to bolster government revenue amid ongoing fiscal challenges. The proposed budget introduces a progressive tax system on passive income, with rates ranging from 13% to 22%. This would apply to income sources such as bank deposit interest, dividends, real estate sales, and securities trading, potentially impacting around 4 million higher-income Russians. Notably, military personnel would be exempt from these increased taxes on passive income.
The draft also suggests imposing 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, a 22% value-added tax is proposed for cross-border online purchases, along with a flat customs fee of 100 rubles for international packages valued below €200. The mining and metals sectors could face a 30% tax on excess earnings linked to global commodity price surges.
The Finance Ministry emphasized that the draft budget would continue to prioritize defense and security, while also fulfilling social commitments and providing support to military personnel and their families. The budget projects a federal deficit of approximately 2% of GDP in 2027, based on an assumed oil price of $50 per barrel.
These proposals come amid persistent pressure on Russia’s public finances, influenced by declining energy revenues and sustained high levels of government spending. The measures aim to address these fiscal challenges by expanding revenue sources through targeted tax adjustments.