Rada to introduce temporary taxation of excess profits of banks

The Verkhovna Rada intends to introduce temporary taxation of excess profits of banks at a rate of 5%.

A total of 247 parliamentarians voted for the adoption of bill No. 9656-d in the first reading, with the minimum required 226, Ukrainian News Agency reports.

Earlier, the Member of the Rada from the Holos faction, the first deputy chairman of the parliamentary committee on finance, tax and customs policy, Yaroslav Zhelezniak, said on his Telegram channel that it was additionally proposed to tax the net interest income of banks at a rate of 5% (in addition to paying corporate income tax).

According to him, if the model proposed by the bill is introduced, additional revenues to the budget for 2023 could be estimated at about UAH 10 billion.

As Ukrainian News Agency earlier reported, banks earned a record-breaking UAH 95.1 billion in the entire history of Ukraine's independence in the first eight months; in August, the profit amounted to UAH 11.9 billion.

For the first half of the military year 2023, banks earned a record profit, at least over the past 15 years in the amount of UAH 67.6 billion.

In 2022, banks reduced net profit by 68% to UAH 24.7 billion.

In 2021, the profit of banks amounted to a record UAH 77.5 billion.