[Original in Russian, this is a paraphrased automated translation.]

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The next tax increase, which the Russian authorities planned for 2027 to reduce the budget deficit and pay for a record increase in war spending, will cost citizens and businesses 3.7 trillion rubles.

This assessment of the Ministry of Finance laid in the draft law on the budget, which last week approved the government and which October 1 should be submitted to the state Duma [Russia’s parliament].

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Starting next year, the government introduces a “super-income tax” for cement producers, fertilizers and gold mining companies; to 22%, it raises the maximum personal income tax rate on “passive income” of individuals, including bank deposits, and also sets a 22% VAT for purchases in foreign online stores.

Next year, these tax innovations will bring 1.5 trillion rubles to the budget, and in 2028-29 - another 2.2 trillion rubles. Metallurgical companies will pay about 200 billion rubles a year in the form of a “super income tax” – only 600 billion rubles for a 3-year period, follows from the materials of the Ministry of Finance. Citizens will have to pay 500-700 billion rubles a year, or more than 2 trillion rubles for three years through increased personal income tax on “passive income”, estimates economist Dmitry Polevoy.

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The budget needs the money of citizens and businesses to finance another increase in military spending, on which the Kremlin will spend every third ruble next year. The article “national defense” from 12.9 trillion rubles this year will increase to 17.1 trillion, and the total cumulative total for 2027-29 the military budget will reach 50 trillion rubles.

“Now every sneezing Russian will be taxed,” describes the situation economist Igor Lipsits. In addition to the announced measures, the introduction of VAT on bank transfers, a 3-fold increase in taxes for the self-employed, a 10-20% increase in the recycling fee for cars, and a “tax on smartphones and laptops” are discussed.

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The increase in the tax burden can make the investment recession in the economy even more pronounced, which has practically stopped growing this year, economist Kirill Rodionov notes. According to Rosstat, in the first half of the year, investments fell by 10%. And at the end of the year will be reduced by 5.4% - the maximum value for 11 years, according to the official forecast of the Ministry of Economic Development.

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Taxes will continue to rise, Lipsitz is sure: “It’s almost a tax tantrum: you need somewhere, somehow, at least some money, and they begin to scratch the back of the head and come up with any raises.” This is, in general, only the destruction of the economy – nothing will happen because of this, and so much money will not be collected.”.

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