Verkhovna Rada Approves Further Tax Hike on Banks to Fund National Security
On Tuesday, October 21, Ukraine’s Verkhovna Rada made a significant and somewhat controversial decision to raise taxes on the country’s banking sector.
This is the second measure in a series of temporary actions aimed at mobilizing additional financial resources to cover expenses related to defense and national security.
The bill №14097, which was put to the vote, received support from 262 Members of Parliament.
MP Yaroslav Zheleznyak emphasized that this move is temporary, involving an increase in the tax rate from 25% to 50%, effective from 2026 and lasting until the first quarter of 2027.
According to Danylo Hetmanetz, head of the parliamentary committee on finance, taxes, and customs policy, this short-term measure is expected to generate at least 30 billion hryvnias in additional revenue for the state budget.
Hetmanetz noted that although the law is temporary, it is a necessary step to leverage profits from the banking sector to support security and defense without imposing additional burdens on ordinary citizens or the real economy.
Furthermore, deputies approved amendments to the current year’s state budget, increasing expenditures on military needs by 324.7 billion hryvnias.
The parliament’s approval of the bill №14103 in its entirety with 297 votes highlights broad political support amidst Ukraine’s complex internal political landscape.