Excess profits of banks resulting from increased operations with government securities are proposed to be subject to a temporary tax, as announced by the head of the Verkhovna Rada Committee on Finance, Taxation, and Customs Policy, Danilo Hetmantsev.

"We have submitted a bill together with colleagues proposing the temporary taxation of bank excess profits. If the proposed model from the bill is implemented, the additional revenue to the budget for 2023 could amount to around 10 billion UAH," stated Hetmantsev.

The bill suggests taxing banks' net interest income at a rate of 5% (in addition to the corporate income tax payment).

It is envisaged that the excess profit tax will be effective from 2024 to 2026.

The funds are proposed to be directed to the general budget fund and allocated for the country's defense.

Moreover, lawmakers refer to a similar practice in some EU countries.

"A similar approach (windfall tax) has already been introduced in Spain, the Czech Republic, Lithuania, and Hungary, so it is worth closely examining the experience of these European countries, which will help strike a balance between ensuring the stability of Ukraine's financial system and the budget's defense needs," noted the head of the budget committee