{"id":26364,"date":"2023-11-13T12:20:13","date_gmt":"2023-11-13T09:20:13","guid":{"rendered":"https:\/\/ces.org.ua\/?p=26364"},"modified":"2023-12-20T12:43:52","modified_gmt":"2023-12-20T09:43:52","slug":"the-difficult-situation-with-the-2024-budget","status":"publish","type":"post","link":"https:\/\/ces.org.ua\/en\/the-difficult-situation-with-the-2024-budget\/","title":{"rendered":"The difficult situation with the 2024 budget justifies additional taxes for banks"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Verkhovna Rada plans to adopt a draft law on taxing excess banks profits.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Initially, the document envisaged an increase in corporate tax from 18% to 36%. However, it was amended for the second reading: <strong>profits for 2023 will be taxed at 50%<\/strong>, <strong>and from 2024 the tax will be 25%.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Such taxes on excess profits (windfall tax) are common in the world, it is not a know-how for Ukraine, says CES Senior Economist Yurii Gaidai to Forbes. And it is not only about the banking sector but also about the commodity industries.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Ukrainian government chose the banking sector because it was the one that made excessive profits under martial law.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the first nine months of this year, <strong>banks generated almost UAH 110 billion in profits<\/strong> (compared to UAH 77.5 billion for the whole of 2021).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This was made possible by the current monetary design, including high rates on certificates of deposit and government bonds.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Given the difficult situation with Ukraine&#8217;s budget for 2023 and 2024, the introduction of additional taxation of banks is justified, Yurii Gaidai comments.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The decision has its drawbacks, as <strong>long-term increased taxation may lead to higher client fees<\/strong>.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, neither the US nor the EU have yet finalised financial assistance for 2024. Therefore, the search for internal resources is extremely relevant.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Source: <a href=\"https:\/\/forbes.ua\/money\/minfinu-treba-bilshe-zakonoproekt-pro-opodatkuvannya-bankiv-khochut-zminiti-bankiri-mozhut-viddati-bilsh-nizh-polovinu-vid-ponad-100-milyardnogo-pributku-13112023-17221\" rel=\"nofollow noopener\" target=\"_blank\">Forbes<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Verkhovna Rada plans to adopt a draft law on taxing excess banks profits. Initially, the document envisaged an increase in corporate tax from 18% to 36%. However, it was amended for the second reading: profits for 2023 will be taxed at 50%, and from 2024 the tax will be 25%. Such taxes on excess [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":25346,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[187],"tags":[],"experts":[464],"news_type":[138,139],"class_list":["post-26364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-experts-in-the-media-en","experts-yurii-gaidai-en","news_type-press-release","news_type-we-are-in-media"],"acf":[],"_links":{"self":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/26364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/comments?post=26364"}],"version-history":[{"count":0,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/26364\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media\/25346"}],"wp:attachment":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media?parent=26364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/categories?post=26364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/tags?post=26364"},{"taxonomy":"experts","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/experts?post=26364"},{"taxonomy":"news_type","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/news_type?post=26364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}