Monobank co-founder Oleg Horohovsky critically assessed the initiative of the head of the Finance Committee of the Verkhovna Rada, Danylo Hetmantsev, regarding the taxation of banks' «excess profits».
Monobank co-founder Oleg Horohovsky critically assessed the initiative of the head of the Finance Committee of the Verkhovna Rada, Danylo Hetmantsev, regarding the taxation of banks' «excess profits».
In a post on his social media channel, Horokhovskyi conducted a «brief excursion into how the banking system works, in his free time from Hetmantsev’s close attention.»
«In order to lend to the economy, banks must have equity, which in wartime is formed exclusively from retained earnings after taxes.
«More profit —> more capital —> more opportunities to lend to the economy —> more profit for companies by attracting resources or lending to consumers by banks —> more taxes from business,» the businessman noted.
According to Horokhovsky, high taxes on banks lead to a washout of bank capital and a slowdown in the economy.
«Given the share of state-owned banks in Ukraine, which already give all their profits to the state in the form of dividends, this initiative will hit the private banking sector the hardest,» the co-owner of Monobank believes.
He added that the private banking sector in Ukraine has no excess profits and receives its main income from lending to the real sector of the economy.
«Nobody likes banks, no one has a good word to say about them. To hell with them,» he concluded his post.
We will remind you that the head of the Finance Committee of the Verkhovna Rada, Danylo Hetmantsev, submitted for registration a draft law proposing to temporarily establish an increased corporate income tax rate of 50% for banks for 2026, while simultaneously prohibiting the taking into account of losses from previous periods.
According to him, such a measure will allow attracting an additional UAH 30 billion to the State Budget for 2026.
