The Russian Union of Industrialists and Entrepreneurs has appealed to the Prime Minister of the Russian Federation, Mikhail Mishustin, demanding a review of the tax changes and the introduction of incentives for companies that protect factories from Ukrainian drones. The Ukrainian Foreign Intelligence Service reported on the appeal on 27 October. The business community warns that the new levies could accelerate capital flight and reduce investment.
Briefly about the main points
- The RSPP is calling for the tax bills to be reviewed ahead of their second reading in the State Duma.
- The business community objects to the 30% levy on the excess profits of extractive companies.
- According to the RSPP’s estimates, the combined tax rate on profits and dividends could reach 42%.
- Business owners are calling for tax relief on construction projects and investments in anti-drone defences.
- The Russian Ministry of Finance has received proposals, but no decision has been confirmed regarding the full package.
The business sector is proposing another way to boost the budget
President of the RSPP Oleksandr Shokhin calls for the tax bills to be reviewed prior to their second reading in State Duma. The association believes that the new rules will increase the financial pressure on businesses and run counter to the previously stated policy of maintaining stable tax conditions until 2030.
One of the key complaints concerns the tax on mining companies’ excess profits, levied at a rate of 30%. According to the SZRU, the Russian budget expects to receive around 8.3 billion dollars from this tax in 2027–2029.
The RSPP proposes, instead, to temporarily increase the standard corporate income tax rate by 0.5–1 percentage point. According to the association’s calculations, this would generate between 5.9 billion and over 11.9 billion dollars for the budget.
Businesses link the increase in fees to the risk of capital flight
Separately, the RSPP opposes the proposed increase in taxation on dividends and other passive income. According to the association, the combined tax burden on companies’ profits and dividends paid could reach 42%, which would reduce the attractiveness of Russian financial instruments and encourage capital flight abroad.
Business leaders are proposing to limit the duration of the higher rates to three years, to maintain favourable conditions for bank deposits and long-term investment, and to review tax thresholds to take account of inflation.
According to Ukrainian intelligence, real investment in the Russian economy fell by 4.6% in the first half of 2026. Representatives of big business believe that the additional tax burden will exacerbate the downturn.
Companies want to recoup the costs of anti-drone security
The RSPP proposes exempting protective structures from property tax and allowing businesses to claim double the amount for mandatory expenditure on the security of critical infrastructure. The association is also calling for the federal investment tax credit to be increased from 3% to 10–12% and for it to be extended to include investments in anti-drone defences.
The issue became more pressing after the Russian authorities effectively shifted a significant proportion of the costs of securing industrial facilities onto the owners. In the first half of 2026, procurement of anti-drone measures in the commercial sector of the Russian Federation rose 6.6-fold compared with the same period in 2025 — to $5.32 million.
Ministry of Finance of the Russian Federation, according to a report in *Kommersant* dated 14 October, confirmed that he had received proposals from the RSPP and stated that he would consider them. The tax changes proposed by the government were already under consideration by the State Duma; as of 27 October, the adoption of the full package of tax relief measures had not been confirmed.
