There is not enough money for war: Russia is preparing a total tax increase

The Russian Ministry of Finance has submitted to the government a draft federal budget for 2027 and the planning period for 2028–2029. Along with it, the department proposed a number of changes to the tax system, which will increase the burden on some citizens and businesses.

This was reported by the Ministry of Finance of the Russian Federation.

The Ministry of Finance stated that among the main priorities of the budget for the next three years remain funding for defense and security, as well as support for Russian military personnel and their families.

The federal budget deficit in 2027–2029 is planned to be kept at about 2% of GDP each year .

Along with the budget package, the Ministry of Finance proposed expanding the progressive personal income tax scale to so-called passive income.

These include dividends, interest on bank deposits, transactions with securities and digital rights, sales of property, insurance payments, and gifts.

Currently, such income in Russia is mostly taxed at rates of 13–15% . Under the new system, a general progressive scale from 13% to 22% will apply to them, depending on the amount of income.

According to the Russian Ministry of Finance, the change could affect about 4 million people , or no more than 6% of citizens with taxable income.

Separately, it is proposed to introduce a tax on passive income at a rate of 15% for mutual investment funds.

Another change concerns purchases abroad. For cross-border e-commerce goods, it is proposed to establish a VAT of 22% , which will be paid by trading platforms as tax agents.

In addition, they want to introduce a customs duty of 100 rubles per parcel for foreign postal items with goods for personal use worth up to €200.

For certain mining and metallurgical companies, the Ministry of Finance has also proposed a tax of 30% on additional income received due to the increase in world prices for solid minerals. For gold, the rate should be 20%.

Recall that earlier in Russia, VAT was already increased to 22% . The Foreign Intelligence Service of Ukraine stated at the time that this decision was related to the increase in the budget burden and military spending.

Also, the Russian Federation’s budget deficit previously increased significantly against the backdrop of falling revenues and high government spending.

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