AUB has insisted on extending the moratorium on taxation of income from deposits in banks at a time of economic crisis

Association of Ukrainian Banks (AUB) at a meeting of the Parliamentary Committee on the tax and customs policy in favor of the extension of the moratorium on taxation of interest income from deposits in banks at a time of economic crisis.

As is known, the effect of the stay provided for by existing legislation, ending on 1 January 2010. In this regard was submitted to Parliament in a number of bills on the subject. One of them - the bill On Amending the Law of Ukraine On the income tax of natural persons (to support the poor) (registration N 4601) provided from 1 January 2010, included in the total monthly taxable income of the taxpayer - a resident of the proceeds received as interest on a deposit in a bank or nonbank financial institutions, including the discount on the personal income savings (deposit) certificate, which exceeds the minimum wage set by law at 1 January of the year in which such payment (accruing).

Another Bill - On Amending the Law of Ukraine On the income tax of natural persons (to continue nenalogooblozheniya bank deposits of physical persons) (registration N 4366) provides for the extension of the moratorium on taxation of interest income from their deposits in banks and other financial institutions prior to 1 January 2013. Also on 10 June in Parliament presented the Cabinet of Ministers of Ukraine the draft law On amending some legislative acts of Ukraine concerning the characteristics of the activities on the financial health of banks (registratsionnyy. N 4630 from 10.06.2009r.), which also proposed extension of the moratorium until January 1, 2013.

advocating the need to maintain the moratorium on taxation of interest income on deposits in banks, first vice-president of AUB Vladimir Bondar, and Director of the Department of AUB on taxation of banks Ludmila Zabarilo at a meeting of the Parliamentary Committee on the tax and customs policy were made with a justification for their position. In particular, they have been pointed out that if the 1 January 2010 interest income of the population of deposits into the accounts of the banks will be taxed, as suggested by Bill N 4601, it could lead to further panic among the population, which further destabilizes the banking system, creates significant risks for the finance and national economy, etc.

the eve of the meeting of the Committee on matters of tax and customs policy of the President of AUB Sugonyako Alexander was sent a letter to that effect, in which it was noted that the appropriateness of the proposed changes to the interests of the budget is highly questionable. The state could lose more of the shortfall in tax on profits by reducing credit supply and credit, than to obtain a tax on income from deposits, - says the letter, the President of AUB.

In AUB

believe that today it is essential to create every opportunity to encourage people to raise funds for deposits in banks to increase lending to the resource base. In fact, according to the National Bank of Ukraine, more than 150 bln. cash outside the banks and for a variety of data from 30 to 50 billion dollars. United States at the hands of the people. This is a national resource, whose involvement would make it possible not to seek funds abroad, and lend to the economy through its own internal sources, - spoken in AUB.

view of the foregoing, the AUB convinced that the introduction of a time during the economic crisis, taxation of interest income on their deposits in banks - is the establishment of systemic risk to the financial system of Ukraine. Therefore, the UBA had expressed full support to the initiatives of people's deputies to extend the moratorium on taxation of interest income on their deposits in banks and other financial institutions before 1 January 2013.