FSC points out risks of increasing tax on bank profits to 50% from 2026
The Financial Stability Council (FSC) at its meeting on October 30 noted the systemic risks that the introduction of an increased tax rate on bank profits at the level of 50% from 2026 may create.
The FSC stressed that "increasing the tax rate on banks to 50% could restrict lending to the economy and weaken financial stability in wartime."
Council members also noted that the expected fiscal impact of raising the rate to 50% could be much lower than the figures publicly communicated.
According to meeting participants, the rate increase could reduce banks' ability to finance key sectors, particularly energy and the defense-industrial complex, which require increased lending during wartime.
The FSC identified several risks, including complications in privatizing banks with a state share, individual institutions failing to implement capitalization programs by the specified deadlines, difficulties complying with capital adequacy requirements in a timely manner according to EU standards, the risk of violating obligations under the Memorandum with the IMF, and reducing incentives for de-shadowing the economy.
In addition, increased tax pressure may affect the ability of banks to maintain the Power Banking network and combat unproductive capital outflows.