Business paid more in excess profit tax than the government expected

Finance Minister Anton Siluanov reported that windfall tax revenues from business in Russia amounted to 315 billion rubles. instead of the initially expected 300 billion. Collections exceeded the Ministry of Finance’s expectations by 5%.

“The budget included 300 billion rubles, today this figure is 315 billion rubles. The federal budget has already received money from this tax,” Mr. Siluanov said on Rossiya 24.

A one-time fee of 10% of the excess profit for 2021–2022 over the same figure for 2018–2019 must be paid by companies whose profits exceeded 1 billion rubles in the past two years. The tax must be paid no later than January 28, 2024. The tax amount could be reduced to a rate of 5% by making a security payment from October 1 to November 30.

According to the minister, most companies chose to pay the tax early. The Ministry of Finance did not expect any revenues in 2024 at the base tax rate. “Yes, 5% is better than 10%,” added Anton Siluanov.

President Vladimir Putin signed the law on the excess profits tax in August. First Deputy Prime Minister Andrei Belousov claimedthat the initiator of the tax was the business itself. Its payment was reported, in particular, “Inter RAO” And Rostelecom. In September a group of deputies suggested extend the excess profit tax to oil and gas companies.

About the payment of the new tax by companies – in the material of Kommersant FM “Windfall tax discount is red”.

Laura Keffer