Pyshnyi on 50% taxation of banks: I hope it won't happen again

NBU Governor Andriy Pyshny expressed hope that the reintroduction of a 50% bank profit tax will not happen again. He emphasized that banks already pay an increased rate of 25%, and retrospective taxation does not contribute to confidence in the tax system and the investment attractiveness of the financial sector. He said this in an interview with Forbes, UNN reports.

I hope this will not happen a third time. Banks and financial institutions are the only sector that already pays a higher rate of 25% corporate income tax. In retrospect, this story did not add to the credibility of the tax system or the investment attractiveness of the banking system. Because there were communications that this tax was exceptional only for the results of 2023

He notes that, despite this, banks have maintained financial stability and successfully completed the second stage of the transition to a three-tier capital structure. All banks currently comply with regulatory capital adequacy requirements. Although the payment of tax may affect this indicator in some institutions, no critical risks have been identified so far.

We will consider capitalization plans where necessary, but we do not see a significant negative impact on financial stability. However, the hypothetical impact of this decision is a 20% reduction in the potential ability of banks to increase their loan portfolio 

Recall 

In 2023, it was decided to tax banks by 50%, which was supposed to be a one-time "action". 

However, in 2024, the Verkhovna Rada supported a bill to increase taxes by UAH 58 billion this year and UAH 137 billion next year, which included an additional 50% taxation of banks.

At the same time, Pyshnyi called for the re-taxation of banks to be evaluated in terms of efficiency and risks.