The Ministry of Finance allowed a return to the tax on excess profits

In the future, under the conditions of a high budget deficit of the Russian Federation and windfall business, the authorities may again resort to levying a tax on excess profits (the so-called windfall tax). About it declared Deputy Finance Minister Alexei Sazanov in an interview with RIA Novosti.

“If in the future a situation hypothetically arises when there are such super-incomes and the need to finance a large deficit, then, of course, this possibility cannot be denied. But it depends on how the situation develops in the future,” he said.

Sazanov pointed to two reasons for the appearance of the tax: “opportunistic excess profits” of companies and “a significant budget deficit.”

Excess Profits Tax Bill was introduced government to the State Duma on June 13. June 26 initiative supported State Duma Committee on Budget and Taxes. The bill will be considered by the lower house today, June 28.

The tax will be levied on the excess of the arithmetic average profit for 2021-2022. over the arithmetic mean of profit in 2018–2019. The rate is set at 10%, the tax must be paid no later than January 28, 2024. At the same time, if the fee is paid from October 1 to November 30, 2023, the business will receive a “discount” and the rate will be halved to 5%.

windfall tax will not affect companies that were created after 2020, and those whose average pre-tax profit for the previous two years does not exceed 1 billion rubles. Also, innovations do not apply to single agricultural tax payers and companies from the oil and gas sector and coal mining.

Ministry of Finance counts receive from the business a total of about 300 billion rubles. It is assumed that the proceeds from the tax will be used to support and develop the social sphere, including support for needy families.