Russia’s Finance Ministry has put forward a draft federal budget for 2027–2029, proposing significant tax measures to boost government revenue amid ongoing fiscal challenges. Central to the proposal is a new 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. This change is expected to impact around 4 million higher-income Russians, while military personnel will be exempt from these increased taxes on passive income.
The draft budget also introduces a 35% tax on specific dividend payments sent to non-resident “Type C” accounts and a 15% tax on passive earnings from mutual investment funds. Additionally, cross-border online purchases will be subject to a 22% value-added tax, with an added flat customs fee of 100 rubles for international packages valued below €200. The Finance Ministry is also targeting mining and metals companies with a proposed 30% tax on excess earnings tied to high global commodity prices.
The ministry emphasized that the budget plan will continue to prioritize defense and security expenditures while fulfilling social obligations and providing support to military personnel and their families. Despite these new measures, the draft budget anticipates a federal deficit of about 2% of GDP in 2027, based on the assumption of an oil price of $50 per barrel.
This proposal comes at a time when Russia is experiencing continued pressure on its public finances. The country’s energy revenues have been impacted by lower prices, while government spending remains high. The Finance Ministry’s budget draft reflects an effort to address these fiscal pressures and secure financial stability in the coming years.