The Verkhovna Rada’s Committee on Finance, Taxation and Customs Policy has recommended the adoption of draft law No. 14097, which proposes a temporary increase in the profit tax for banks to 50% in 2026. This was announced by the committee’s chairman, Danilo Hetmantsev.
This is reported by Business • Media
Main Provisions of the Draft Law
The draft law is prepared for the second reading and contains two important provisions concerning the banking sector. Firstly, it proposes a temporary increase in the profit tax rate for banks to 50% for the year 2026. Secondly, the document prohibits banks from reducing their financial results before taxation by the amount of losses incurred in previous periods.
Concerns and Risks from Financial Sector Experts
However, this committee decision contradicts the position of the Council for Financial Stability, which includes representatives from the National Bank of Ukraine and the Ministry of Finance. The agency believes that the expected fiscal effect from the tax increase will be “significantly lower than publicly communicated”, while the risks to the banking system will be considerably higher.
The main threats include: limitations on the credit and investment potential of banks, which are critically important for financing energy and the defense industry; complications in the privatization of state banks and violations of obligations outlined in the Memorandum with the IMF. The NBU also mentioned that due to the increased profit tax rate, some state banks may require recapitalization.
The National Bank of Ukraine also notes that the tax increase may lead to the need for additional recapitalization of some state banks, which could negatively impact financial stability and the ability to lend to the economy, particularly in strategically important sectors such as energy and the defense-industrial complex.