Russian business is demanding changes to the new tax bills, fearing a drop in investment and a mass outflow of capital.
This was reported by the Foreign Intelligence Service.
Proposals to that effect were submitted to Russian Prime Minister Mikhail Mishustin by Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs. Business representatives stress that the new rules will increase the tax burden and break the government’s promise to keep taxation stable until 2030.
In particular, business is opposed to a 30% tax on windfall profits for mining companies, which is expected to add around $8.3bn to the Russian budget in 2027–2029. Instead, the oligarchs propose temporarily raising the corporate profits tax from 25% by only 0.5–1 percentage point. Business also insists on increasing the cap on the federal investment tax deduction from 3% to 10–12%, citing that real investment in the Russian economy in the first half of this year has already fallen by 4.6%.
There is also particular concern about the taxation of passive income, as the combined tax on profits and dividends could reach 42%. According to the Foreign Intelligence Service, the oligarchs propose limiting the higher rates to three years, keeping relief for bank deposits and long-term investments, and indexing tax thresholds in line with inflation. In addition, the Russian Union of Industrialists and Entrepreneurs opposes a 15% tax for investment funds and is asking for tax breaks for companies that spend their own money to protect facilities from drone attacks.