Kremlin declines to explain Russia’s proposed tax changes

Kremlin spokesman Dmitry Peskov has declined to comment on a Russian Finance Ministry proposal to raise taxes, referring journalists to the government and the Finance Ministry, which drafted the measures.

Journalists asked Peskov to address the initiative amid previous statements by Russian authorities that tax increases were not being planned.

“No comment. They should contact the government and the Finance Ministry. They are the authors of the draft document and, accordingly, they should be the ones to comment on it,” Peskov said.

Earlier on Thursday, Russia’s Finance Ministry submitted to the government a draft federal budget for 2027 and the planning period covering 2028 and 2029.

Among the proposed measures is the inclusion of dividends, interest on bank deposits, income from securities and digital rights, proceeds from property sales, insurance contracts and gifts in the main personal income tax base. The proposed rates would range from 13% to 22%, compared with the current rates of 13% to 15%.

The draft also proposes a 22% value-added tax on goods sold through cross-border e-commerce and a 15% profit tax for mutual investment funds on passive income.

Another measure would raise the tax on dividends paid to non-residents into special “C” accounts to 35%.

The Finance Ministry has also proposed introducing a 100-ruble ($1,18) customs fee on foreign parcels worth up to 200 euros.

By Tamilla Hasanova