As Russia grapples with sustained fiscal pressures, the country’s Finance Ministry has put forward a draft federal budget for the period of 2027–2029, introducing new tax measures to bolster government revenue. Central to this proposal is a progressive tax rate ranging from 13% to 22% on passive personal income including interest from bank deposits, dividends, real estate sales, and securities trading. This measure is expected to impact approximately 4 million of Russia’s higher-income citizens, although military personnel will be exempt from the increased tax on passive income.
The draft budget also suggests a substantial 35% tax on specific dividend payments directed to non-resident “Type C” accounts, coupled with a 15% tax on passive earnings from mutual investment funds. Additionally, cross-border online purchases would incur a 22% value-added tax, along with a fixed customs fee of 100 rubles for international packages valued under €200. Mining and metals firms could face a 30% tax on excess earnings tied to elevated global commodity prices.
Despite these revenue-generating measures, the Finance Ministry has affirmed its commitment to prioritizing defence and security, while also fulfilling social obligations and supporting military personnel and their families. The proposed budget forecasts a federal deficit of about 2% of GDP in 2027, based on an assumed oil price of $50 per barrel. This comes amid ongoing challenges for Russia’s public finances, as energy revenues have been pressured by lower prices, with government expenditure remaining high.
