The Ministry of Finance and the NBU are against raising the bank profit tax to 50% in 2024 - MP
Kyiv • UNN
The Ministry of Finance and the NBU opposed the increase in the bank profit tax from 25% to 50% in 2024. This was envisaged in the government's draft law, but poses risks to domestic borrowing and the recapitalization of state-owned banks.
The Ministry of Finance of Ukraine and the National Bank of Ukraine opposed the increase in the bank profit tax in 2024 from 25% to 50%, as provided for in the revised government bill on tax increases. This was reported by MP Yaroslav Zheleznyak, UNN reports.
Details
"The Ministry of Finance has openly opposed the increase of the tax on banks to 50%. First, they are against the IMF. Secondly, they say that this will increase the risk of domestic borrowing. This provision is being removed from the law," Zheleznyak said .
He later added that the NBU was also against it, as it would raise the risk of additional capitalization of state-owned banks.
Addendum
In July, the Cabinet of Ministers submitted a draft law to the Verkhovna Rada to raise taxes. The government expected that the law would bring in an additional UAH 125 billion to the budget in 2024.
Later, it became known that the draft law had been finalized and was planned to be put to a vote in the Rada in the first weeks of September. The draft law, among other things, planned to set corporate income tax rates for banks at 50% for 2024. The additional budgetary resources of UAH 125 billion planned by the law on tax increases were reduced by 4 times to UAH 30.1 billion.
The Minister of Finance of Ukraine Sergiy Marchenko has stated the need to increase taxes to finance the security and defense sector. The Ministry of Finance is looking for a compromise with the parliament on tax increases that will be acceptable to society and business.
