Tax on banks brought the budget 30 billion UAH — three times more than expected from VAT for individual entrepreneurs
Extension of the 50% rate on bank income provided the state budget with about 30 billion UAH in additional revenues, which is three times higher than the expected effect from the introduction of value-added tax for individual entrepreneurs with a turnover threshold of 4 million UAH.
This was reported by the Verkhovna Rada Committee on Finance, Tax and Customs Policy.
According to estimates, the government expected to receive about 10 billion UAH in additional revenues to the state budget from the introduction of VAT for individual entrepreneurs. At the same time, the continuation of the increased tax rate on bank income at 50% gave the budget about 30 billion UAH.
The parliamentary committee notes that such a result indicates greater efficiency of the approach where additional tax burden is placed on entities with higher incomes.
In the first quarter of this year, banks earned 26 billion UAH in net profit. Last year, in the first quarter, it was 40 billion UAH. So there is some decrease in total profits, but, in my opinion, it is not critical and does not require shifting the burden onto customers. Moreover, according to the NBU data, this year banks' profit before tax increased by 6.4%.
It is also emphasized that over 65% of the banking system's profit is generated by state-owned banks. In this regard, additional tax revenues from the banking sector are considered one of the mechanisms for financing defense expenditures.
The committee notes that currently there are no signs of a crisis in the banking sector related to the increase in tax burden.
Recall that a draft law 15262 "On Amendments to the Tax Code of Ukraine Regarding the Features of Taxation of Banks with Corporate Income Tax" has been registered in the Verkhovna Rada.
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