meta_id 3176171

On May 21, 2026, the National Bank of Ukraine (NBU) published its position opposing a proposed bill that would extend a 50 percent profit tax on banks beyond its original one-time application in 2023. The NBU argues that continuing the elevated tax rate poses significant risks to credit expansion and the banking sector's capacity to support Ukraine's economy during wartime and post-war reconstruction. The central bank contends that the extra tax substantially constrains banks' credit potential, as their ability to expand lending depends on capital reserves, which are currently sustained by profits generated through lending and investments in government bonds. The NBU notes that bank profitability has declined, with return on equity falling to 50 percent in 2025 from 52 percent in 2024 and 59 percent in 2023. The regulator estimates that pursuing 20 billion hryvnia in immediate fiscal revenue would forfeit 200 to 300 billion hryvnia in future lending capacity for the economy. The NBU further contends that the tax's budgetary effectiveness is questionable, as state-owned banks generate half of sector profits and already remit most earnings to the budget as dividends. The central bank argues the elevated tax disproportionately burdens the banking sector, which already faces a 25 percent profit tax rate compared to 18 percent for other sectors, and contributes 68 kopiykas per hryvnia of value added to the state budget—the highest among all economic sectors. The NBU emphasises that extending the tax undermines investor confidence and threatens the privatisation of state-owned banks, which requires reputable long-term investors. The regulator warns that the National Bank's toolkit for mitigating negative capital effects is nearly exhausted, and further measures could jeopardise Ukraine's European Union integration plans.