The Ukrainian parliament has approved the first draft of a bill that would raise taxes for commercial banks, Ukrainian MP and Deputy Head of the Finance Committee, Yaroslav Zheleznyak, said in a Telegram post on Oct. 19.
According to him, the bill was supported by 247 MPs in its first reading. The document will now be sent back to relevant parliamentary committees to include amendments proposed during the debate.
The bill proposes increasing the tax rate for commercial banks’ profit from 18% to 36% with no entitlement to deduct losses from past years throughout 2024-2025.
The draft 2024 national budget accounts for the bill becoming law, expecting it to raise an additional UAH 9.9 billion ($271 million) in fiscal revenue.
The National Bank of Ukraine previously reported that commercial banks made a net profit of UAH 95.1 billion ($2.6 billion) from January to August 2023, marking a record number in the history of Ukraine’s banking system.