The corresponding bill was approved by a vote of 17 MPs in favor and 2 against.
“There was a tough discussion about removing the 50% tax increase on banks,” said Zheleznyak.
“The MPs were for it, but the National Bank, the Finance Ministry, and the IMF were categorically opposed. They said banks would need recapitalization and raising UAH 385 billion [$9.3 billion] in the market by the end of the year would be impossible. We agreed to revisit the measure in the second reading.”
Key provisions of the bill include raising the universal military tax from 1.5% to 5%, increased taxes on individual entrepreneurs, and a 25% profit tax for financial institutions.
If passed, the bill is expected to bring UAH 30 billion ($726 million) to the state budget in 2024 and UAH 126 billion ($3 billion) in 2025. Parliament is scheduled to vote on the bill next week.