The Moscow government wants to cover the huge military expenses with money from the wealthiest citizens and companies in the raw materials sector, while revenues from oil and gas are falling.
Russia will increase taxes for the wealthiest citizens and companies in the resources sector next year, in order to continue financing the war in Ukraine. The Russian Ministry of Finance announced the measure four days after the elections for the State Duma, according to the French publication Les Echos.
The tax rate for income from dividends, bank deposits, and real estate sales will increase from 15% to 22%. The Kremlin’s revenues from oil and gas are decreasing, partly due to Ukrainian impacts.
The budget project for 2027, presented by the government last week, forecasts a deficit of only 2% of GDP. The Ministry of Finance is banking on new taxes to achieve this target.
The main tax base for income tax will now also include earnings from dividends and other participations, interest on deposits, transactions with securities and digital assets, the sale of real estate and shares, as well as insurance and donation contracts.
According to the ministry’s estimates, the changes will affect at most 6% of the population with taxable income, that is, about 4 million people. The Kremlin thus seems to avoid the middle class.
Mining and metallurgical companies will pay a 30% tax on the super-profit obtained from the recent increase in global raw material prices. Dividends received by foreign shareholders of Russian companies will be taxed at 35%, and investment funds at 15%.
Details, HERE