The Russian Ministry of Finance has presented its new budget plan, which includes the creation of new tax figures and the increase of several taxes just five days after the parliamentary elections, concluded with a comfortable victory for the ruling party. The Executive justifies this revenue shift by the need to keep the defensive capabilities of the Kremlin fully operational and to reinforce assistance to the military and veterans of the war in Ukraine.
"The budget policy for the next three years aims to meet all the social obligations of the State, satisfy the defense and security needs of the country, provide social support to the participants in the 'special military operation' --the name the Kremlin gives to the war in Ukraine-- and their families, and ensure technological leadership," reads a statement from the Russian Ministry.
With the new regulations, the Government will raise the bracket to which passive incomes —such as dividends, interest from deposits, securities and digital assets transactions, or the sale of real estate— are subjected to between 13% and 22%, aligning it with the personal income tax rate.
Deposits below one million rubles (10,400 euros) and taxpayers who have participated in the war in Ukraine will be exempt from this increase. According to estimates from the Kremlin itself, the measure will affect about six million Russians, around 6% of the population.
The package also sets a tax of 15% on passive income from mutual funds —collective investment funds— and raises the rate applied to dividends paid to non-residents with type C accounts to 35%, that is, the accounts blocked in Russia where the money corresponding to investors from countries considered "unfriendly" is held.
Additionally, a standard rate of 22% is introduced for purchases of goods made through cross-border e-commerce and a tariff of 100 rubles (just over one euro) is established for postal shipments from abroad of personal consumption products valued up to 200 euros.
The mining and metallurgical sector will be another of the major affected by the reform, with a rate of 30% on additional income from certain companies and a specific tax of 20% for gold, on the grounds that metal prices have surged strongly throughout this year.
"The budget project is balanced. It will allow the State to meet all its obligations and maintain macroeconomic stability despite any possible changes. Budget sustainability depends not only on the sufficiency of resources but also on the quality of their management. Therefore, the budget package includes a series of measures to prioritize spending, and resources are concentrated in the most important areas for the State and its citizens," pointed out the Russian Minister of Finance, Anton Siluanov.