Photo from UNIAN
The introduction of the fee will encourage citizens and businesses to purchase and sell non-cash foreign currency.
Ukrainian parliamentarian from the Servant of the People Party Oleksandr Dubinskyi has proposed that a fee on cash currency exchange operations be set at a rate of 1%, and the proceeds will be used for the development of sports in Ukraine.
Read alsoUkraine's central bank sells US$157.5 mln more than buys over week
The MP tabled bill No. 2208 in the Verkhovna Rada, Ukraine's parliament, on October 3, to amend the Tax Code of Ukraine.
According to Dubinskyi, the introduction of the fee will encourage citizens and businesses to purchase and sell non-cash foreign currency, while it will make banks create conditions for cashless forex transactions.
Experts predict the initiative will affect the forex market.
"In fact, any such fee is just a way to force the currency exchange into the shadows. We have already had such experience with fees to the Pension Fund from purchases of cash currency. It earned about UAH 200-300 million [US$8-US$12 million] for the budget per year, while ousting citizens' transactions worth US$1 billion into the shadows! This is beneficial only to black market operators who suffered greatly with the cancellation of this fee in 2017," Deputy Head of the Center for Economic Strategy Maria Repko wrote on Facebook on October 7.
According to Repko, UAH 11 billion (US$442.5 million) is to be allocated from the 2020 national budget for development of sports.