29 May 2024 21:17

MinFin tax package to bring 2.6 trillion rubles into the budget system in 2025

MOSCOW. May 29 (Interfax) - The package of tax amendments that the Russian Finance Ministry has submitted to the government could earn an estimated 2.6 trillion rubles of windfall revenue for the budget system in 2025, according to an explanatory note to the draft document, seen by Interfax.

More than half of this amount or 1.6 trillion rubles including tax deductions will come from increasing the corporate profit tax rate from 20% to 25% with 11.1 trillion rubles expected over the period to 2030.

The introduction of excise tax on nicotine raw materials and tobacco-free nicotine-containing smoking mixtures in 2025 will generate revenues of 50 billion rubles, and excise tax on natural gas purchased for the production of ammonia will be about 21.7 billion rubles annually. Increasing the thresholds for applying the simplified taxation system, as well as treating taxpayers using the simplified system as VAT payers will earn the federal budget approximately 473 billion rubles of VAT, and regional budgets about 258 billion rubles. Regional budgets face a corporate income tax shortfall of 324 billion rubles and corporate property tax shortfall of 58 billion rubles per year with the amount by which losses exceed additional revenues to be offset from the federal budget. In total, this measure will provide generate windfall revenue of around 2.5 trillion rubles over the six-year horizon.

Treating alcohol-containing medicines not on the relevant list approved by the government and the pharmaceutical ethyl alcohol substance as excisable goods will bring the state about 20 billion rubles a year.

The transition to paying state fees for registering ownership rights to real estate including land from a fixed amount to a percentage of the transaction price will bring another 16 billion rubles at least into the budget system in 2025.

The introduction of differentiated personal income tax rates in 2025 will provide additional revenue of about 533 billion rubles, and the total to 2030 inclusive, taking into account changes in the parameters for standard tax deductions, will be about 3.1 trillion rubles.