The Russian government is expanding tax deductions for investment activities, including securities purchases and long-term deposits, with the aim of boosting personal savings with state support. The phrase that accompanied the rollout was a reference to a new promotion that underlines the changes.
Prime Minister Mikhail Mishustin stated that broadening the set of eligible reasons for tax deductions is already included in the government bill. He explained that the deduction will apply when the condition of a minimum investment period of ten years is satisfied. This applies to voluntary retirement contributions, securities acquisitions, and the new long-term deposit program slated to begin in 2024.
Mishustin emphasized that these reforms give Russians more opportunities to grow their savings through various channels with government backing, making it easier to accumulate wealth over time.
Earlier in the year, President Vladimir Putin signed a law establishing a citizens long-term savings program. This framework allows individuals to increase their savings using personal funds and retirement contributions, supported by state facilitation. The measure is designed to provide a stable foundation for long-term financial planning and to encourage prudent accumulation of capital among the population.
Experts have weighed in on the potential impact of these changes, particularly regarding shifts in savings incentives and how investment behavior could respond to the new tax advantages. The overall effect is anticipated to influence the pace at which households allocate resources toward securities and long-term deposits, aligning with broader macroeconomic goals.
From the perspective of monetary policy, analysts note how the new framework may interact with the central bank’s policy stance and the trend in key rates that influence savings decisions for Russians. The changes are expected to complement other fiscal and financial measures aimed at supporting long-term financial security for citizens.