In a robust display of fiscal performance, tax revenues from Moscow-based taxpayers surged to ₽6.6 trillion in 2024, marking a 25% increase over the previous year and accounting for more than one-fifth of all tax inflows into Russia’s consolidated federal budget. These figures were presented by Marina Tretyakova, Head of the Moscow Federal Tax Service (FNS), during her address to the Moscow City Duma.
The capital continues to serve as Russia’s fiscal engine, with its contribution to federal tax revenue alone reaching ₽2.8 trillion, a nearly 22% increase year-over-year. This performance underscores the Moscow region’s dynamic economic activity and tax administration’s growing effectiveness.
VAT and Digital Oversight Drive Growth
Value-added tax (VAT) remains the most significant revenue driver, contributing almost 80% of Moscow’s total tax collections. VAT receipts rose by 19% in 2024 to exceed ₽2.1 trillion, thanks to both favorable macroeconomic conditions and the introduction of advanced tax compliance tools. The FNS has increasingly relied on digital risk markers and algorithm-driven oversight to combat tax evasion, prompting stronger compliance.
Aggressive Tax Planning Under Pressure
Moscow’s tax authorities also reported progress in curbing aggressive tax optimization strategies. More than ₽20 billion in additional liabilities were voluntarily disclosed by taxpayers during 2024. Furthermore, the FNS successfully defended over ₽2 billion in VAT refunds after verification procedures, preserving public funds.
Non-Budgetary Funds and Social Contributions Surge
Nearly ₽3 trillion in revenue was channeled into non-budgetary funds such as pensions and social insurance, constituting a quarter of Russia’s national intake. This growth, at 123% of the previous year’s level, outpaced regional wage increases and reflects the catch-up repayment of tax deferrals granted to businesses during sanction-era adjustments.
Moscow’s Regional Budget Grows 20%
The tax intake into the Moscow city budget reached ₽4.5 trillion, up 20% from 2023. The rise was fueled by:
- A 4% increase in the regional gross product
- Strong performance in the tech and industrial sectors
- High consumer demand
- Wage growth and income legalization efforts by the FNS
Notably, personal income tax (PIT) collections stood at nearly ₽2.4 trillion, of which ₽2.2 trillion was credited to the city’s consolidated budget, a 26% year-on-year increase.
Moscow’s financial health reflects a broader trend of fiscal centralization in Russia, where the capital’s advanced infrastructure, economic diversity, and digital enforcement capacity continue to elevate it as a model for tax compliance and policy execution nationwide.
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