Ukraine’s parliament is preparing to impose a one-year 50% tax on bank profits in 2026, despite opposition from financial regulators who warn it could undermine lending and violate commitments to the IMF, reported Ukraine Business News.

Danylo Hetmantsev, head of the Verkhovna Rada’s Finance, Tax and Customs Policy Committee, said the committee had recommended the measure’s adoption at its second reading. The draft law proposes temporarily raising the corporate profit tax rate for banks to 50% and forbidding lenders from offsetting taxable income with previous losses.

The Financial Stability Council – which includes the National Bank of Ukraine (NBU) and the Finance Ministry – previously advised against the move, saying its fiscal benefits would be “significantly lower than publicly communicated,” while the potential risks were high.

According to the council, the higher rate could restrict banks’ capacity to provide credit and investment, particularly in critical sectors such as energy and defence, and complicate the planned privatisation of state-owned lenders. The NBU also warned that some state banks might require additional capital to meet regulatory requirements under the proposed tax regime.