Rada Finance Committee approves resource bill at first reading with 50% tax on bank profits

The Verkhovna Rada Committee on Finance, Tax and Customs Policy on Monday recommended that MPs adopt at second first reading the revised resource bill No. 11416-d on increasing the military tax from 1.5% to 5% from October 1, 2024.

"The committee recommended adopting the resource bill No. 11416-d, prepared in a new version, for second first reading," Head of the committee Danylo Hetmantsev said in his Telegram channel.

His first deputy, Yaroslav Zhelezniak (Holos faction), said the bill was supported by 19 committee members, three abstained, while one voted "against."

"Since the law as a whole will not be adopted before October, the implementation will be 'retroactive' from October 1 (…) The first reading vote will be held in the coming days," the MP said.

According to him, thanks to the inclusion in the bill of a provision on increasing the bank profit tax to 50% and its support by the Ministry of Finance, the proposed tax initiatives are expected to bring UAH 58 billion to the 2024 state budget and UAH 137 billion to the 2025 state budget.