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The Finance Ministry submitted to the government a draft budget for 2027–2029 and proposed raising personal income tax on passive income to 22%

Private draft

The Finance Ministry submitted to the government a package of draft laws on the federal budget for 2027–2029 and amendments to the Tax Code. The agency proposed extending the personal income tax rate of up to 22% to Russians’ passive income and introducing new charges for online purchases from abroad.

The Finance Ministry submitted to the government a package of draft laws on the federal budget for 2027–2029 and amendments to the Tax Code. Among the proposals are higher taxes on so-called passive income of Russians and new charges for goods bought abroad.

The progressive personal income tax scale is to be extended to income from dividends, interest on deposits, transactions with securities and digital rights, the sale of property and ownership stakes, as well as insurance and gifts. Such income is currently taxed at 13% and 15%, while the draft provides for a general scale from 13% to 22% depending on the amount of income.

According to the Finance Ministry, the changes will affect about 4 million people. The income of war participants will not be affected.

For goods bought on foreign online platforms, the agency proposes introducing VAT at a rate of 22%, with the platforms themselves acting as tax agents. For foreign parcels with goods for personal use worth up to €200, they also want to charge a customs fee of 100 rubles.

The federal budget deficit in 2027–2029 is planned at around 2% of GDP annually. By comparison, by the beginning of September the federal budget deficit in 2026 had reached 5.79 trillion rubles — 53% more than originally planned for the entire year.

Among the priorities of the new budget, the Finance Ministry names the fulfillment of social obligations, defense and security spending, support for war participants and their families, infrastructure development, and “technological leadership”. Insurance pensions are planned to be indexed twice: by 6.8% from February 1 and by another 3.3% from April 1; by the end of the year, the average old-age pension, according to the Finance Ministry’s calculations, should amount to 29.9 thousand rubles.

Authorities also plan to index maternity capital and child benefits, and about 1.9 trillion rubles have been allocated for programs to improve housing conditions for families with children. More than 105 billion rubles are planned for the construction of 150 schools by 2030, more than 47 billion for the repair of kindergartens, and another 25.7 billion for the construction of more than 100 new ones; almost 278 billion rubles are earmarked for the modernization of primary healthcare, and almost 2 trillion rubles for the national projects of “technological leadership”, of which 139 billion rubles are planned for the “Machine Tools” and “Unmanned Aircraft Systems” projects.

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