The initiative on a new tax on excess profits is unlikely to pass the first reading

The initiative to introduce an additional tax on excess profits for businesses is causing concern in the business community and is unlikely to pass the first reading in the State Duma. This was reported to Izvestia by Alexey Krylov, an expert of the Council on Financial, Industrial and Investment Policy of the Chamber of Commerce and Industry of the Russian Federation, a tax consultant.

Earlier it was reported that the head of the Fair Russia — For Truth faction, Sergei Mironov, will submit to the State Duma a draft basic law on the introduction of a 10% tax on the excess profits of organizations for the period 2024-2025.

"The initiative to introduce an additional tax on excess profits raises serious concerns in the business community and is unlikely to be supported even at the first reading stage," Krylov said.

He recalled that a one-time tax on excess profits had already been introduced last year. This collection was positioned as a one-time measure due to the specific economic situation and the need to mobilize income.

"However, the reintroduction of a similar tax may undermine business confidence in the stability of tax policy. Since 2025, the tax burden on businesses has already increased in Russia, including an increase in the income tax rate to 25%. Additional withdrawals in the current economic instability may negatively affect the investment activity and financial stability of companies," the expert said.

He pointed out that big business is already actively involved in the implementation of social projects, invests in the development of regions and supports infrastructure initiatives.

"The introduction of a new tax on excess profits may not only reduce the opportunities for such investments, but also jeopardize the fulfillment of social obligations already assumed. In addition, in the current economic conditions, many companies are facing rising costs and instability in the markets, which, we believe, makes it unlikely to make super profits," Krylov concluded.

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On April 25, it became known that the leader of the Fair Russia — For Truth faction, Sergei Mironov, would submit a bill to the State Duma, according to which a 10 percent tax would be imposed on super profits. It was noted that this initiative will affect banks and commodity companies.