NBU called the increase in the tax on bank profits to 50% risky.

The National Bank of Ukraine (NBU) believes that increasing the tax on bank profits to 50% is too risky. NBU Chairman Andriy Pyshnyi stated that by the end of the week, a package of decisions will be announced to help banks cover the budget deficit by purchasing domestic government bonds without issuance.

"The risks of such an increase in the profit tax to 50% for financing the deficit and increasing lending will be greater than the benefits... The balance is quite fragile and needs to be maintained," Pyshnyi emphasized at the European Business Association's event "Global Forecast. Strengthening Unity".

The NBU Chairman also noted that the Ministry of Finance likewise expressed displeasure about the increase in the profit tax, although at the committee meeting, the Ministry of Finance supported this increase.

Pyshnyi also stated that the National Bank is considering opportunities to expand channels for banks to cover the deficit by purchasing domestic government bonds without issuance.

"By the end of the week, corresponding decisions will be announced," stated the NBU Chairman.

Pyshnyi also stressed that the NBU supports a permanent increase in the profit tax for financial companies from 18% to 25% to avoid tax arbitration with banks.

Source: Interfax-Ukraine