MOSCOW, Jan 27 (Reuters) - Russia may lift a ban on online casinos and impose a 30% tax on their revenues in a bid to generate up to 100 billion roubles ($1.3 billion) for the state budget, the
Russia Considers Lifting Online Casino Ban to Boost Budget Revenue
Government's Revenue Strategies
MOSCOW, Jan 27 (Reuters) - Russia may lift a ban on online casinos and impose a 30% tax on their revenues in a bid to generate up to 100 billion roubles ($1.3 billion) for the state budget, the Kommersant daily reported on Tuesday, quoting sources.
Tax Increases and Budget Deficit
Russia raised its budget deficit target twice last year to 2.6% of GDP as revenues could not keep pace with rising military spending to sustain the war in Ukraine. This year, Russia targets a budget deficit of 1.6% of GDP.
Impact on Consumer Goods Imports
The Russian government has raised taxes to the tune of at least 27.6 trillion roubles in fiscal plans since 2022 to help balance its budgets, and economists warn that new tax hikes are inevitable.
Concerns Over Tax Spiral
In a bid to raise revenues, the government has also targeted via value-added tax (VAT) the consumer goods imports that flow into the country from China through Central Asian states using the Eurasian Economic Union's free trade arrangements.
In a separate measure, Deputy Industry Minister Roman Chekushov told Business FM radio that the government will target large consignments of consumer goods arriving in Russia through trans-border electronic trade platforms.
The Finance Ministry declined to comment on the Kommersant report and the statement from Chekushov.
On January 1 the government raised VAT to 22% from 20%, aiming to add 4.4 trillion roubles to the budget from 2026 to 2028. It has also scrapped some VAT breaks for small businesses, creating an expected revenue of 200 billion roubles.
The government has also targeted the betting industry with new taxes, which are expected to boost revenues from the current 1 billion roubles a year to 60 billion roubles.
Economists warn that increased taxes might trigger a 'tax spiral,' where new taxes stifle business activity, leading to lower future tax income and forcing the government to implement further tax hikes.
($1 = 76.3705 roubles)
(Reporting by Darya Korsunskaya; Writing by Gleb Bryanski)
