Shokhin seeks profit-based levy in government tax package talks

Russian businesses hope to agree with the government on taxing profits rather than excess revenues in selected industries before the second reading of the budget and tax package, business association chief Alexander Shokhin said.

Speaking at the State Council's industry commission, Shokhin pointed to the windfall profit tax used in 2023. He said businesses, the government and the Finance Ministry had then agreed on a calculation method acceptable to both sides.

The idea under discussion would share exceptional profits with the federal budget where companies actually earn them. Shokhin opposed basing the additional burden on turnover or revenues. He did not announce an agreement to amend the tax package.

Shokhin linked the proposal to businesses scaling back investment plans. In his assessment, the Economic Development Ministry's forecast points to a new investment cycle starting in 2028 at the earliest. He urged policymakers to consider how current tax decisions affect future budget revenues.

He also criticised an investment deduction proposed by Alexey Repik of Delovaya Rossiya, under which investors would receive a benefit after five years or more. Shokhin said uncertainty over how support rules might change during that period would make investors cautious about the mechanism.