Speaking at a joint meeting of the Association of Ukrainian Banks and the National Association of Banks of Ukraine, Viktor Berlyn, President of the League of Insurance Organizations of Ukraine, said that while the financial sector supports efforts to strengthen state budget revenues during wartime, additional taxation could undermine long-term economic recovery.
According to Berlyn, higher taxes would reduce banks' ability to finance the economy, weaken the investment climate and increase the cost of financial services for both businesses and households. He stressed that tax stability remains a key factor in attracting and retaining investment capital, particularly at a time when Ukraine needs substantial funding for reconstruction and economic development.
The insurance sector could be affected through several channels. A slowdown in lending activity would reduce insurance demand, particularly through bancassurance, which currently accounts for around 13% of insurers' sales. At the same time, weaker credit growth would constrain economic expansion, limiting the development potential of the insurance market.
Berlyn also highlighted the role of insurers as providers of long-term capital through investments in government securities and bank deposits, arguing that strengthening the capital base of financial institutions should be a priority for policymakers.
He cautioned that unpredictable tax measures could send a negative signal to international investors, especially as Ukraine competes with other Central and Eastern European countries for capital. In his view, a strong banking and insurance sector will be essential to supporting post-war recovery, investment inflows and sustainable economic growth.
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