Russian Parliament Approves Tourism Tax Law

Written by Kathrine Frich

Jul.10 - 2024 10:09 AM CET

Photo: Shutterstock
Photo: Shutterstock
The legislation allows municipalities to determine the specific tax rate,

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The Russian State Duma has passed a new law introducing a tourism tax as part of efforts to improve the nation's tax system, Lenta reports.

Some Exemptions

The legislation, which received final approval, allows municipalities to determine the specific tax rate, with revenues directed to local budgets where hotels and other accommodations are situated.

Certain groups will be exempt from the tax, including Heroes of the Soviet Union and the Russian Federation, veterans, and participants in special military operations. This measure is designed to ensure that those who have served the country are not burdened by the additional tax.

Rises til 2029

Starting in 2025, the tourism tax rate will initially be set at 1% of the accommodation cost. Each year, the rate will increase by one percentage point, continuing until 2029. The tax will also vary based on seasonal demand and the category of the accommodation but will adhere to the limits outlined in the Tax Code.

This new law aims to bolster local economies by providing municipalities with additional revenue. It reflects Russia's broader strategy to enhance its tax system and address the financial needs of local communities. The tax is anticipated to impact both domestic and international tourists, potentially influencing travel patterns and accommodation choices within Russia.