St. Petersburg is facing a significant budget shortfall due to changes in tax laws that took effect in 2023. The city’s Vice-Governor Alexey Korabelnikov addressed the issue during a parliamentary session on June 11, revealing a considerable decrease in tax revenue.

According to Korabelnikov, the abolition of the consolidated group of taxpayers (CGT) has led to a decline in income from companies that previously belonged to this group. The city experienced a reduction of 47 billion rubles in tax revenue in the last year alone.

Deputy Marina Shishkina raised concerns about the impact of these changes, highlighting that several companies formerly part of the CGT are no longer paying taxes in St. Petersburg.

Korabelnikov stated that the city is collaborating with the federal government to seek compensation for the lost revenue. While direct financial assistance hasn’t been received, the vice-governor emphasized that important decisions have been made at the highest levels of government to provide additional funding to St. Petersburg. He assured the parliament that efforts to secure compensation for the city will continue.

The elimination of the consolidated group of taxpayers in 2023 has shifted the distribution of tax revenues, resulting in a decrease for St. Petersburg and an increase for Moscow. Gazprom group was the main CGT for St. Petersburg.