The Verkhovna Rada has supported another increase in the corporate income tax for banks. According to MP Yaroslav Zheleznyak, the rate increases from 25% to 50%. This is the third time that the government has extended the tax, which was originally planned to be introduced for only one year.
The tax will be doubled
According to Zheleznyak, the parliament voted to amend the Tax Code to increase the corporate income tax rate for banks from 25% to 50%.
«This is the third time that a temporary tax has become permanent. It was promised for a year, but it remains again,» the MP said.
Context of the solution
The increase is explained by the need to fill the budget during the war. According to the Ministry of Finance, last year the increased rate brought in more than UAH 20 billion in additional revenues.
However, experts warn that a steady increase in the tax burden could reduce the investment attractiveness of the banking sector and encourage the shifting of some profits into the shadows.
What's next
After the law is passed, the document must be signed by the President. The changes will come into force after official publication.
Earlier, the IMF and the National Bank urged the government to avoid unpredictable tax decisions that could undermine confidence in Ukraine's financial system.
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