The Rada is discussing a sharp increase in taxes on banks in 2027
On May 22, a bill was introduced in the Verkhovna Rada that would extend the higher tax rate on banks into 2027. The bill, initiated by the head of the parliament’s finance committee, Danylo Getmantsev, and a group of lawmakers, proposes imposing a 50% surtax on banks’ profits. The initiative sparked a lively debate, particularly involving the leadership of the National Bank of Ukraine.
This was reported with reference to a post by Getmantsev.
According to the lawmaker, during wartime, banks are generating record profits largely due to transactions involving government securities. For example, by the end of 2025, the revenues of 60 banks reached 579.3 billion UAH (which is 14.2% more than in 2024 and 29.9% more than in 2023).
“In wartime, funding the security and defense sector is our unconditional top priority. During 2023–2024 and 2026, additional taxation of banks has already proven its effectiveness. Therefore, we are acting proactively: to ensure the predictability of tax policy, we are securing financial resources for the future right now,” he explained.
The lawmaker emphasized that the bill is intended to increase budget revenues for 2027 and allocate additional funds to defense needs.
At the same time, National Bank Governor Andriy Pyshnyy opposed this initiative. He stressed that this decision would have a short-term fiscal effect but would deprive the economy of the opportunity to grow.
The head of the National Bank recalled how the Verkhovna Rada had adopted a decision to temporarily raise the corporate income tax rate for banks from 18% to 50% for 2023. “One cannot equate 2023 with the current situation. At that time, the banking sector accepted the tax increase to 50% with understanding as a one-time, necessary step, since the profits were largely of a non-market nature. Today, the reality is different,” he added.
Pyshnyy emphasized that banks’ profits are generated primarily through lending to the economy and investments in government bonds, that is, through support for the state and business amid the war. He noted that banks do not simply accumulate capital; they transform it into loans for businesses, support for the energy sector, the defense sector, and the country’s recovery.
“At the same time, banks’ return on equity is already declining: 59% in 2023, 52% in 2024, and about 50% in 2025. This is a natural process of returning to a more market-oriented model of the sector’s operations,” noted the head of the NBU.
The head of the National Bank emphasized that the burden on the banking sector is disproportionate. He stressed that banks accounted for 11% of all state budget revenues, including dividends from state-owned banks, while their share of GDP is only 2.9%.
“And there is another fundamental point here. State-owned banks generate half of the sector’s profits. In other words, with this tax, the state is effectively extracting additional resources from its own banks, which finance critical sectors of the economy and are the largest investors in government bonds,” Pyshnyy explained.
According to the head of the NBU, the most significant problem with the initiative is that the extra tax limits the economy’s future credit resources. He noted that while the expected revenue from extending the increased tax is approximately 20 billion hryvnia, the state risks losing 200–300 billion hryvnia in potential resources for lending to the economy in the future.
“This is a matter of strategic choice. Do we want to have a strong banking system capable of scaling up lending to the economy and supporting the country’s recovery? Do we want investors to enter the Ukrainian market? After all, such a disproportionate burden discriminates against the industry and deters investors,” Pyshnyy said, adding that the MPs’ initiative weakens the country’s financial foundation.
Later, Getmantsev responded to Pyshny’s statement, emphasizing that the draft law on a tax on banks’ excess profits does not scare off investors. “I believe that what actually scares off investors is the largest money-laundering operation, created with the direct assistance of the National Bank chairman and his friends at Sensbank. But the tax does not scare them away, as evidenced by Europe’s highest return on banking capital—even with the tax factored in,” wrote the head of the parliamentary committee.
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