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Russia’s Finance Ministry looked into alternatives to one-time tax on excess profits

The Federation Council approved a law establishing a 10% tax on excess profits for large companies on July 28

MOSCOW, July 31. /TASS/. The Russian Ministry of Finance considered several alternatives to a one-time tax on excess profits, Finance Minister Anton Siluanov said in an interview with TASS.

"Various options were considered. We adhere to the Tax Code's primary concept of not changing tax laws that exacerbate business conditions during the tax period," he stated.

Earlier in June, First Deputy Prime Minister Andrey Belousov stated that Russia should avoid big tax reforms for the next five years. The idea of a windfall tax, according to him, belongs to business. Belousov voiced skepticism that companies would make a one-time voluntary contribution to the budget next year.

On July 28, the Federation Council approved a law establishing a 10% tax on excess profits for large companies. The law will come into force on January 1, 2024.