Thousands protest against new Ukrainian tax code

[News_Editor]

Thousands protest against new Ukrainian tax code

2010-11-23 03:18:06 GMT+7 (ICT)

KIEV, UKRAINE (BNO NEWS) -- Thousands of people on Monday protested in the streets of Kiev over the new Ukrainian tax code that was adopted by the parliament on Thursday as part of the tax reform plan.

Thousands of small businesses owners urged President Viktor Yanukovych to veto the tax code. The new bill was passed by the Parliament last week but still needs the signature of the president before becoming a law.

President Yanukovych defended the tax reform after saying that it is necessary to fulfill the country’s objectives. The bill will raise taxes for hundreds of thousands of small businessmen such as street vendors, freelance taxi drivers and hairdressers.

"If there are some shortcomings we will try to fix them, but the state needs a tax code," Yanukovych said. "It is not just a means of collecting taxes. It is a tool to protect the rights of the people and investors."

However, Yanukovych's plan has received many critics that accuses the government's plan will give tax breaks to wealthy entrepreneurs at the expense of the middle class, and small business owners went to the city's streets to protest.

On Monday, Prime Minister Mykola Azarov said that the government is prepared to take into account critics of the new tax code but remarked that Ukraine will not allow public protests on the issue that threaten the country’s stability.

"We know that complaints by representatives of small and medium sized businesses, who operate under the so-called simplified tax code, are justified," Azarov said.

Currently small and medium-sized business pay a flat tax between $20-$75 per month. Under the new tax code, all businesses will have to file complex, itemized returns, regardless of their size, which the government says will bring the country extra revenue during economic slumps.

Protesters warned that if President Yanukovych does not veto the tax code, they will launch a petition for a nationwide referendum on the termination of presidential powers and the dissolution of parliament. These protests have been the biggest display of public discontent in Yanukovych's presidency.

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