Russia’s Finance Ministry has unveiled a draft federal budget for 2027–2029, introducing significant tax reforms aimed at bolstering government revenue amid ongoing fiscal challenges. The proposed changes include a progressive tax system on passive personal income, with rates ranging from 13% to 22%. This would impact income from sources such as bank deposit interest, dividends, real estate sales, and securities trading. While these measures are expected to affect approximately 4 million higher-income Russians, military personnel will be exempt from the increased tax on passive income.
The draft budget also suggests a 35% tax on specific dividend payments directed to non-resident “Type C” accounts and a 15% tax on passive earnings from mutual investment funds. In addition, cross-border online purchases would encounter a 22% value-added tax, coupled with a flat customs fee of 100 rubles for international packages valued below €200. Mining and metals companies are also targeted, with a proposed 30% tax on excess earnings tied to surging global commodity prices.
The Finance Ministry emphasizes that the budget will prioritize defense and security, uphold social commitments, and provide support to military personnel and their families. This fiscal plan is projected to result in a federal deficit of about 2% of GDP by 2027, assuming an oil price of $50 per barrel. The proposal is a response to continued pressure on Russia’s public finances, with energy revenues impacted by declining prices and persistent government spending demands.