Russia Raises Taxes on Miners, Investors to Fund Ukraine War
- On Thursday, Russia's Finance Ministry proposed new windfall taxes on commodity producers, including a 20% levy on gold sales and 30% on metals and fertilizer revenue, to narrow a widening budget deficit tied to nearly four years of war spending in Ukraine.
- The proposal identifies defense and national security as the budget's strategic priority, with officials seeking "to increase the resilience of the budget system" amid mounting war costs and a projected deficit of roughly 2% of GDP annually through 2028.
- Moscow also 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 at rates up to 22% will affect about 4 million Russians, the Finance Ministry estimated, though exemptions remain for participants in the "special military operation" and their families.
- 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.
32 Articles
32 Articles
Russia Hits Citizens and Businesses With Record $44 Billion Tax Bill as War Costs Soar
Russia is preparing a new round of tax increases expected to extract nearly $44 billion from individuals and businesses through 2029 as the government seeks additional revenue to cover rising military spending and a widening budget deficit.
The Russian Ministry of Finance will include dividends, deposits and real estate sales in the NPFL base with a rate of up to 22 per cent to finance the war against the background of falling oil and gas revenues.
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.
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