Russia's State Duma has backed a draft windfall tax on extractive companies to help fund the federal budget between 2027 and 2029.
Eleonora Kavshar, the head of the parliamentary committee on labour and social policy, said the measure formed a central part of legislative work during the first month of the ninth Duma convocation. Speaking to the newspaper Vzglyad, Kavshar explained that deputies had prioritised the broader budget package, social commitments, and additional revenue from commercial windfalls.
Under the draft legislation, resource-extracting enterprises will face a 30 percent levy on excess earnings, while a reduced rate of 20 percent will apply to gold mining operations. The duty will be charged on the additional value of raw materials during periods of favourable global market conditions.
Kavshar said the proposed levy served as a good example of legislators working to replenish the federal treasury from profitable corporate entities rather than by placing financial burdens on ordinary citizens.
Budget priorities and party debate
The revenue measure sits inside a broader federal budget package that covers national accounts and the budgets of state social funds. Kavshar said the draft guarantees that the state will meet all of its social obligations, which secured backing from the LDPR faction despite internal misgivings over specific spending cuts.
Deputies from the party endorsed the financial plan even though it includes a 4 percent reduction in interbudgetary transfers to regional administrations and omits new policy measures aimed at raising birth rates.
The State Duma sits as the 450-seat lower chamber of the Federal Assembly, Russia's national parliament, holding constitutional responsibility for drafting federal laws and ratifying state budgets. The LDPR, founded as the Liberal Democratic Party of Russia, is a long-standing parliamentary group that regularly participates in national budget debates.
Labour rights and industrial consultations
In addition to financial planning, Kavshar said her committee concentrated on establishing pension coverage for residents in Donbas and Novorossiya. Lawmakers also advanced statutory protections for workers, focusing on the deadlines required for employers to disclose information to trade unions and on mandatory wage safeguards for shift workers deployed to rotational work sites.
Talks over the exact terms of the extraction tax are expected to involve corporate representatives before the legislation is finalised. Alexei Sazanov, Russia's deputy finance minister and state secretary, said in October that the Ministry of Finance would meet with the Russian Union of Industrialists and Entrepreneurs to examine proposals submitted by commercial leaders.
The Russian Union of Industrialists and Entrepreneurs acts as the premier lobbying organisation for major domestic businesses, representing heavy industry, mining conglomerates, and energy producers in negotiations with government ministries.
