Russia planning tech levy to support radio electronics industry, will affect finished goods at first - ministry

MOSCOW. Nov 10 (Interfax) - Russia plans to introduce a new technology levy in two phases, the first concerning finished products in the electronic and radio electronics industries, and the second electronic components, the Industry and Trade Ministry's press service said.

Tax Code amendments drafted by the Finance Ministry would usher the tech levy in from September 1, 2026. A source familiar with the amendments told Interfax earlier that that the levy would over both imports and production of certain goods in Russia. The size of the levy and the list of goods subject to it are to be approved by the government.

"A new means has been devised to finance the development of Russia's electronics and radio electronics industries with the aim of strengthening the country's technological sovereignty. Funds raised will be used for government support programs for this critical industry," the Industry and Trade Ministry said.

The levy will be introduced in stages, "allowing businesses to adapt and the government to fine-tune the mechanism," it said.

At the first stage, the levy will be on finished electronic equipment, such as laptops, smartphones and lighting products. At the second stage it will be extended to electronic components and modules on which this equipment is based. "This is a key element in stimulating the extensive localization of production within the country," the ministry said.

` "Prior to taking this step, in order to prevent double taxation on components and finished products, it will be tested and consultations with the business community will be held with a view to arriving at the right mechanism for implementing the second stage," it said.