New Taxes In Russia Fuel Tensions Between Kremlin And Big Business Intelligence

(MENAFN- UkrinForm) Ukraine's Foreign Intelligence Service reported this on Telegram, according to Ukrinform.

"Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs (RSPP), has approached Russian Prime Minister Mikhail Mishustin with proposals to amend tax bills before their second reading. Businesses believe the new rules will increase the tax burden and break the promise to maintain stable tax conditions until 2030," the statement said.

The intelligence agency recalled that Russia had previously raised taxes on corporate profits, personal income, and value-added tax (VAT).

"The 'oligarchs' trade union' opposes a 30% tax on excess profits of mining companies. It is expected to bring approximately $8.3 billion into the state budget in 2027-2029. Instead, the RSPP proposes temporarily raising the corporate profit tax from 25% by 0.5-1 percentage point. This could generate between $5.9 billion and more than $11.9 billion in budget revenue," the agency said.

In addition, Russian businesses are demanding that the maximum federal investment tax deduction be increased from 3% to 10-12%, arguing that actual investment in the Russian economy fell by 4.6% in the first half of 2026.

The agency noted that the taxation of passive income is another particular concern for oligarchs.

"According to the RSPP, the combined tax on corporate profits and dividends paid out could reach 42%, reducing the attractiveness of Russian financial instruments and increasing the risk of capital outflows. Businesses propose limiting the higher rates to three years, retaining tax benefits for bank deposits and long-term investments, and indexing tax thresholds to inflation," the Foreign Intelligence Service said.

The agency also reported that the RSPP opposes taxing investment funds at a rate of 15%.

It noted that, with profit margins of 20-30%, taxes could absorb 50-75% of profits.

"Alternatives include taxing income at the investor level or postponing the introduction of the new rules. Businesses are also seeking tax breaks for companies protecting their property against drone attacks, including exemptions from property tax for the relevant facilities and permission to count mandatory spending on critical infrastructure protection twice for tax purposes," the intelligence agency said.

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The agency explained that the RSPP's demands highlight the conflict between the state's need to replenish its budget and businesses' ability to finance growth.

"Additional taxes amid declining investment could slow the modernization of enterprises and shrink the future tax base. Unpredictable tax rules also undermine confidence in the government and force companies to postpone long-term projects," the statement said.

Photo: Ukraine's Foreign Intelligence Service

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