Russia Raises Taxes on Miners, Investors to Fund Ukraine War
The plan would hit 4 million Russians and raise VAT on foreign online purchases to 22%, officials said.
- On Thursday, Russia's Finance Ministry proposed new windfall taxes on commodity producers, including a 20% levy on gold sales and 30% on other metals and fertilizer revenue, to narrow a widening budget deficit tied to nearly four years of war spending in Ukraine.
- The proposal states that "the strategic priority of the budget is the financial provision of defence and national security needs," as officials aim "to increase the resilience of the budget system" amid prolonged conflict.
- Separately, Moscow plans to more than double the tax rate on dividends paid to investors from countries Russia designates as "unfriendly"—including the United States, United Kingdom, and European Union member states—raising the rate from 15% to 35%.
- Taxes on "passive" income—including deposits, dividends, and property sales—were also proposed at rates up to 22%, affecting about 4 million Russians, though exemptions remain for participants in the "special military operation."
- Despite these measures, the Finance Ministry projects the government will still run a budget deficit of roughly 2% of gross domestic product annually over the next three years, even as officials claim the draft budget remains "balanced and sustainable.
29 Articles
29 Articles
As soon as the ballot papers of the Duma election are counted, Vladimir Putin breaks his promises. Tax increases, exploding energy prices, new taxes on everything – from the smartphone to the plane ticket. Russia needs money – for the Ukraine war.
The Russian state's money to continue the war in Ukraine is running out. And so Vladimir Putin and co. are going to get it from the citizens themselves.
Just after the Kremlin party won by a majority in the recent legislative elections, the Russian government has proposed an unpopular tax hike.
Russia is pushing for additional tax increases targeting Western investors as well as domestic companies and individuals to alleviate the financial burden caused by the prolonged war in Ukraine. According to the Financial Times (FT) and other sources on the 25th, the Russian Ministry of Finance proposed raising the tax rate applied to dividend income from investors, including those from so-called "unfriendly countries," from the current 15% to 3…
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