Lawmakers Propose Raising Tax on Bank Deposit Interest in Russia
The faction “Fair Russia – Patriots – For Truth” has put forward a bill in the State Duma aimed at lifting the threshold for taxable interest income on bank deposits. The proposal seeks to raise the minimum deposit amount that triggers personal income tax on interest from 1 million rubles to 5 million rubles. This information comes from a report by TASS, citing remarks made by party leader Sergei Mironov.
Mironov indicated that during 2021 and 2022 the interest from deposits above the current 1 million ruble threshold was not taxed. However, starting in 2023, the plan is to extend personal income tax to deposits that surpass 1 million rubles, with the proposal suggesting a higher threshold of 5 million rubles. He noted that for many individuals, the deposited funds represent a significant portion of their income.
The bill put forward by Mironov aims to increase the income tax on deposit interest from 1 million rubles to 5 million rubles. Previously, Russian citizens enjoyed an exemption from personal income tax on interest earned from deposits above 1 million rubles, a regime that applied to deposit income for 2021 and 2022.
On the preceding day, the New People (NWRP) group submitted a separate draft to the Duma. This proposal touches on broader fiscal policy by suggesting limits related to fuel price increases, tying them to official inflation levels as a means to curb rising costs for consumers.
In the current fiscal landscape, the return on bank deposits in Russia has shown a notable shift. Analysts have tracked patterns where deposit holders experience varying levels of income from interest, influenced by central bank rate decisions, inflation expectations, and financial market conditions. The discussion around tax treatment of deposit interest remains part of a wider conversation about how the tax system supports budget needs while affecting savers and investors in the country.
Observers note that changes in tax policy on deposit income can have ripple effects across the financial sector. Banks may adjust their product offerings, savings incentives, and fee structures in response to policy shifts. For savers and potential investors in Russia, understanding how deposit interest is taxed is essential for planning long-term finances, especially when interest rates or tax rules are subject to revision by lawmakers.
Looking ahead, the outcome of these proposals will hinge on parliamentary debate, fiscal priorities, and potential negotiations with other political groups. If the bill advances, the higher threshold for taxable interest could alter the behavior of savers who park funds in bank deposits, potentially shifting some preference toward other investment vehicles or tax-efficient options. The broader impact on consumer prices, inflation, and the overall economy will depend on how the final legislation is drafted and implemented.
As discussions unfold, the public is encouraged to monitor parliamentary hearings, official statements, and expert analyses to gauge how tax policy on deposit income might evolve. The central question remains: how will any changes balance budget needs with the financial well-being of residents who rely on deposit income as part of their savings strategy?