Russia's Draft Budget for 2027: Higher Taxes to Finance Rapidly Rising Military Spending

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Moscow plans a budget deficit of 2.2 percent of gross domestic product and tightens taxes on capital income, online trade and foreign investors.

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The proposals aim, among other things, at passive incomes, online purchases from abroad, air travel and car imports, and aim to guarantee armament and modernise defence and pay military allowances.

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Key takeaways To address the growing budget deficit resulting from rising military spending, the Russian Ministry of Finance has presented its provisional budget for 2027. The proposal, submitted to the Duma in accordance with the October 1 deadline, contains various new tax measures intended to generate additional government revenue. Progressive […]