Russia’s Finance Ministry has unveiled a draft federal budget for 2027-2029, introducing several new tax measures aimed at boosting government revenue amid ongoing fiscal challenges. The proposed budget features 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. The ministry expects these changes to impact approximately 4 million high-income Russians, with military personnel remaining exempt from these higher taxes on passive income.
Additionally, the draft suggests a 35% tax on certain dividend payments transferred to non-resident “Type C” accounts and a 15% tax on passive earnings of mutual investment funds. Cross-border online purchases would also be subjected to a 22% value-added tax, coupled with a flat customs fee of 100 rubles for international packages valued below €200. The proposal extends to mining and metals companies, which could face a 30% tax on excess earnings tied to elevated global commodity prices.
The Finance Ministry emphasized that the budget maintains a focus on defense and security priorities while fulfilling social commitments and providing support to military personnel and their families. Despite these new measures, the budget projects a federal deficit of about 2% of GDP in 2027, predicated on an assumed oil price of $50 per barrel.
This budget proposal comes as Russia continues to face fiscal strain, with public finances being pressured by lower energy revenues and sustained high levels of government spending. The Finance Ministry’s efforts to adjust the tax framework reflect a broader strategy to stabilize the country’s economic situation in the face of fluctuating global markets.