Ukrainian Parliament passes controversial tax code

Ukrainian Parliament passes controversial tax code

2010-12-03 00:47:34 GMT+7 (ICT)

KIEV, UKRAINE (BNO NEWS) -- The Ukrainian Parliament on Thursday passed the controversial tax code amended by President Viktor Yanukovych despite mass protests against the reform.

Small businessmen and citizens protested against the reform as they claimed it benefited wealthy entrepreneurs with tax breaks in contrast with raise taxes for them. They urged the Ukrainian president to veto the law after it was approved by the parliament in November.

President Yanukovych vetoed the tax reform on Tuesday due to the criticism and mass protests. Furthermore, he ordered the government to amend it before signing it.

According to Irina Akimova, first deputy chief of the presidential staff, provisions limiting businessmen's right were removed from the code.

Yanukovych defended the new tax code as considering it necessary to fulfill Ukraine’s objectives. The president said that it is not just another way to collect taxes but a tool to protect the rights of people and investors.

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.

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