Introduction a 15% pension fund tax on the sale of foreign currency by Bill 11433 will reduce its cash turnover, make illegal transactions unprofitable and provide alternatives, Deputy Chairman of the National Bank of Ukraine Valeriy Prokhorenko told a financial press club meeting at UKRINFORM.

"All payments for non-cash hryvnia (card - auth.) will not be subject to this tax," Prokhorenko said.

He noted that the tax is not imposed on transactions with foreign currency transfers from abroad for up to UAH 150 thousand (equivalent), the payment of more than 30-day bank deposits in foreign currency, payments on treasury bills and bonds in foreign currency, as well as coupon yields.

Introduction of the tax will boost wages in the local currency and an increase in non-cash payments.

"The dollar turnover is not prohibited but forced into the banking sector," Oleksandr Dubikhvost, director of the NBU department for the foreign currency reserve management and open market operations, said.

He noted that the purchases of foreign currency are not liable to the tax and not forbidden, because the population has loans in excess of $10 billion, which must be repaid; there is also a need for currency to travel abroad, pay tuition fees and for medical treatment abroad.

Ukrinform