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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Enterprise Directors strike, politicians win, but we are still without a Tax Code

18 December, 2001 - 00:00

On December 13 about two thousand people picketed in front of the Verkhovna Rada building, protesting against the adoption of the Tax Code, though the discussion of this subject is postponed to December 20. The lead of the protest action was taken be the Anticode All-Ukrainian Public Initiative Committee, which comprises only twenty business structures. This committee demands that Verkhovna Rada pass a decision to submit the Tax Code for public discussion, then finalize the draft and resubmit it for the second reading (such procedure is stipulated in the Regulations of Verkhovna Rada). According to the draft coordinator of the Expert- Coordination Center of the Ukrainian businesswomen K. Liapina, all strata of society should express their attitude toward the code. In her opinion, this will be a sort of guarantee that not only requests of businesspeople, but also of different strata of society, will be reflected in the final code. The participants of the action consider the rules laid down in the code de facto abolish the simplified tax system for small enterprises, will inevitably lead to the increase of the shadow economy.

The so-called anti-codex doesn’t disguise the fact that its actions also have apolitical aspect. Ms. Liapina asserted that in the parliamentary election businessmen will support those political forces, which will positively respond to their demands concerning the revision of the draft Tax Code. It can be admitted that there is a reverse connection, and businesspeople have already become players on someone or another’s political field. Interfax-Ukraine reports that there are representatives of the Communist Party, All-Ukrainian Independent Transport Union, The Ukrainian Union of Chernobyl victims, unions of businessmen, educators and scholars of Kiev, of the trade and service sphere, businessmen from Vinnytsia obalst, Zhytomyr, Dniprodzerzhynsk, and Sumy taking part.

The State Committee for Regulatory Politics and Enterprise renders certain moral support to the pickets. Its Chief Oleksandra Kuzhel believes that only the new Verkhovna Rada can adopt the Tax Code. The State Committee for Enterprise have asked the President and Prime Minister to withdraw the Tax Code draft from discussion in the present parliament in order to have enough time for its public discussion, the Committee Chief says. Ms. Kuzhel declared, despite the fact that the Tax Code bill provides for reducing rates of basic taxes, the burden on managing objects is not going to become less. “As a result, according to previous estimates, the general tax burden will increase in 3-4% in comparison with existing one,” the State Committee Chair says. According to UNIAN, the State Committee proposes to retain the main principles of tax system in force and stipulate the gradual reducing of existing taxes and duties.

Responding to the questions about who exactly is using the protest action, the State Committee Chair said, “I don’t know who has brought people to the parliament. I just know that somebody phoned them and told them to go out, otherwise you’ll be oppressed. It’s clear that now, before the elections, people are going to be used. I wish they hadn’t stood up in vain today Next time they might have no wish to stand up for their rights.”

Meanwhile the day before, at the meeting of the Council for the government and parliament cooperation, Prime Minister Anatoly Kinakh declared that both the government and parliament will do their best to adopt the Tax Code, which will stimulate structural reforms in Ukraine to the maximum.

By Petro IZHYK, Vitaly KNIAZHANSKY, The Day
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