Russia’s Finance Ministry has unveiled a draft federal budget for 2027–2029, proposing a series of tax hikes aimed at bolstering government revenue amid ongoing fiscal challenges. The budget draft introduces a progressive tax rate ranging from 13% to 22% on passive personal income, such as interest from bank deposits, dividends, real estate sales, and securities trading. These changes are expected to impact approximately 4 million higher-income Russians, although military personnel will be exempt from the increased taxes on passive income.
In addition to domestic tax increases, the proposal outlines a 35% tax on certain dividend payments sent to non-resident “Type C” accounts and a 15% tax on passive income of mutual investment funds. The draft also seeks to tax cross-border online purchases with a 22% value-added tax, along with a flat customs fee of 100 rubles for international packages valued below €200.
Mining and metals companies are also targeted, facing a potential 30% tax on excess earnings linked to rising global commodity prices. These measures are part of the Finance Ministry’s strategy to maintain fiscal stability while prioritizing defense and security spending, as well as fulfilling social commitments and supporting military personnel and their families.
The draft budget projects a federal deficit of around 2% of GDP in 2027, based on an assumed oil price of $50 per barrel. This proposal comes as Russia continues to grapple with fiscal pressures, exacerbated by declining energy revenues and sustained high government expenditures.