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Archive for November, 2010

President vetoes tax code

Posted by the Editor on November 30, 2010


News / 30 November 2010 | 16:07

President vetoes tax code

President vetoes tax code

Ukrainian President Viktor Yanukovych has vetoed the tax code. The head of state told this to reporters at the Boryspil airport on Tuesday before flying to Astana for an OSCE summit.

Yanukovych said at a meeting with economic experts from the government and the presidential administration that the sections of the tax code related to the protection of the rights of producers and businesses should be reviewed.

The government, at the order of the president, created a working group to review the amendments to the tax code, which was adopted by parliament on November 18. The group also includes small- and medium-sized businessmen.

The president gave a little time to draw up amendments to the code and said that he was planning to consider them as early as Thursday. “If they meet the demands facing the tax code, I will sign them and submit them to parliament,” the president said, UKRINFORM  reported.

As reported, entrepreneurs have been protesting against the adoption of the tax code on Independence Square in Kyiv since November 22. They demanded that the president veto the tax code. Despite the fact that the head of state vetoed the document, the rally is continuing.

The protesters are continuing to insist on the resignation of the creators of the tax code, in particular, Finance Minister Fedir Yaroshenko, Deputy Prime Minister Serhiy Tihipko, Head of the State Committee for Entrepreneurship Mykhailo Brodsky and Prime Minister Mykola Azarov.

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President meets Czech Foreign Minister

Posted by the Editor on November 30, 2010


News / 30 November 2010 | 14:22

President meets Czech Foreign Minister

President meets Czech Foreign Minister

President Viktor Yanukovych met with Minister of Foreign Affairs of the Czech Republic Karel Schwarzenberg.

President Yanukovych expressed appreciation of today’s meeting in the context of discussing the prospects of Ukrainian-Czech cooperation.

Ukraine is interested in further development of Ukrainian-Czech dialogue and filling it with pragmatic meaning, he said.

“In terms of trade and economic relations between Ukraine and the Czech Republic, this year is more successful than the two previous ones. Today we see a revival of trade and economic relations,” Viktor Yanukovych said, noting in particular the 35% growth of trade turnover in the first three quarters of 2010.

“This year we will have the turnover of slightly more than $1 billion, but its growth potential remains very high. It is far from being used and we should work on that,” he said.

Speaking about the internal situation in Ukraine, President stressed its stability. “We have launched the whole series of reforms,” Viktor Yanukovych said, adding that currently the appropriate program of economic reforms approved in May 2010 is being implemented in our country.

The President also stressed that European integration remains a strategic goal of our state. In this connection he informed his interlocutor about the outcome of the Fourteenth Ukraine – EU Summit held in Brussels on November 22.

“We got the Visa-Free Travel Action Plan. We hope to implement it in 2011,” Viktor Yanukovych stressed, adding that the sides noted progress in negotiations on the FTA and believe that this fact brings us closer to the Association Agreement.

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Tax officers claim new code deprives them of a third of their rights

Posted by the Editor on November 30, 2010


News / 30 November 2010 | 12:43

Tax officers claim new code deprives them of a third of their rights

Tax officers claim new code deprives them of a third of their rights

The new Tax Code reduces the rights and powers of the tax administration by 30% compared to those currently enjoyed by the administration, Deputy Chairman of the State Tax Administration of Ukraine Serhiy Lekar has said on ICTV Channel.

“The Tax Code reduced the rights of the tax administration by 30% and at the same time increased penalties on the tax authorities for the violation of the law,” he said, UKRINFORM reported.

Lekar said that any action that is not done in line with the Tax Code envisages the liability of the tax service, the state, and entrepreneurs.

He said that the process of the modernization of the tax service was currently continuing. “The most important thing to do is to reduce the number of meetings between tax inspectors and taxpayers,” Lekar said.

Ukrainian President Viktor Yanukovych earlier spoke against the strengthening of administrative pressure by the tax administration on businesses. “If there is any pressure, we will remove it,” he said.

As reported, First Deputy Prime Minister Andriy Kliuyev supported the demands of entrepreneurs to reduce the grounds for the administrative freezing of property in the new Tax Code. In addition, he supported a number of other proposals by entrepreneurs with respect to the audits of taxpayers by supervisory authorities.

Small- and medium-sized businesses are protesting in Ukraine and demanding that the president veto the Tax Code.

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Ukraine-Russia dispute over Kerch Strait unresolved – Yanukovych

Posted by the Editor on November 30, 2010


News / 30 November 2010 | 11:03

Ukraine-Russia dispute over Kerch Strait unresolved - Yanukovych

Ukraine-Russia dispute over Kerch Strait unresolved – Yanukovych

The dispute between Ukraine and Russia over the demarcation of the Kerch Strait remains one of the unresolved issues in bilateral relations, Ukrainian President Viktor Yanukovych said on Monday.

“The issue of the demarcation of the Kerch Strait remains unresolved,” Yanukovych said at a meeting with Speaker of the Russian Federation Council Sergei Mironov, RIA Novosti reported. “There are several proposals on both sides, but they do not meet our interests.”

The border between the two states in the strait linking the Sea of Azov to the Black Sea has been a bone of contention between the two countries since the collapse of the Soviet Union. The agreement on the issue is crucial for the potential introduction of visa-free travel for Ukrainians to the European Union.

Ukraine unilaterally established a maritime border with Russia in the 1990s, saying it was based on the Soviet-era administrative border between the two republics.

Russia has repeatedly denied the existence of Soviet administrative borders and called for shared use of the Kerch Strait.

In the summer of 2003, a bitter dispute broke out between Russia and Ukraine over the Tuzla Island in the middle of the Kerch Strait, which came to a head when Russia tried to construct a spit connecting the island. Ukraine accused Russia of encroaching on its territory.

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New Russian-Ukrainian gas crisis impossible – Ukrainian foreign minister

Posted by the Editor on November 29, 2010


News / 29 November 2010 | 14:45

New Russian-Ukrainian gas crisis impossible - Ukrainian foreign minister

New Russian-Ukrainian gas crisis impossible – Ukrainian foreign minister

A halt of Russian gas deliveries to Europe due to the absence of a transit deal between Moscow and Kiev will not happen again, Ukraine’s Foreign Minister Konstantyn Gryshchenko said on Monday.

“A repetition of the situation that Europe experienced last year is impossible. It will never repeat again. We are holding serious negotiations with Russia but gas transit to Europe is guaranteed by both parties,” Gryshchenko told a news conference, according to RIA Novosti.

On January 1, 2009, Russian gas giant Gazprom suspended gas transit to Europe via a pipeline which runs through Ukraine because of an absence of an agreement with Kiev. Supplies resumed on January 19, when the agreement was signed.

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President’s address to Ukrainian nation on Holodomor Victims’ Memory Day

Posted by the Editor on November 29, 2010


Analytics / 29 November 2010 | 13:01

President's address to Ukrainian nation on Holodomor Victims' Memory Day

President’s address to Ukrainian nation on Holodomor Victims’ Memory Day

I bow to the memory of those innocently killed by the Holodomor.

Even now, the tragedy of 1932-1933 is difficult to comprehend. It was a real Armageddon, when people were loosing their human essence because of hunger.

Therefore, this national tragedy that has devoured millions of innocent people, is no subject to oblivion.

Much has been and is being done since Ukraine claimed independence to perpetuate the memory of those killed by the Holodomor. Memorial signs, monuments and even entire memorials are established.

The most touching are monuments and memorials built by a folk custom, for the community money. This is an old Ukrainian tradition. By the way, long before any government decisions, the first such memorial cross was consecrated on August 12, 1990 not far from Lubny, near the Mharsk monastery, with full observation of the Orthodox ritual, in the presence of tens of thousands of people from all over Ukraine and from abroad.

At the same place, according to the Cossack tradition, the Mound of Mourning was placed and the Great Vitche Bell put over the Kyiv-Kharkiv road, near the Mharsk monastery, in the presence of thousands of people. Since then, memorial services are being held there annually. This memorial is now known worldwide.

It had happened, I repeat it, before any government decisions. Then the state took over the matter. And that – to its honor.

However, when these sad commemorations have begun to resemble a conveyor, when at numerous gatherings and round tables some so-called “scientists” have begun throwing around with ease the numbers of those, who died of starvation – 3 million – 5 million -7 million and even more, it became a blasphemy. After all, even one person’s death is an uncompensated loss not only for the family, but also for the Cosmos. So how can one throw around millions at the abacus as though it is something insignificant? It is an unforgivable sin.

We must finally adhere to the principle: “As of today, on the basis of documents and testimonies of witnesses the proven number is so much. The search continues and the horrible figure is being specified based on it.”

In these mournful days we would not like to turn to critical analysis, but we must speak the truth and only truth in order to not devaluate the sacrament of universal grief with hasty calculations.

Let us all together once again bow to the Memory of innocent victims of the Holodomor and pledge to do everything to ensure that such horror never threatens Ukraine again!

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Vice Premier Tihipko: Tax Code will not increase unemployment

Posted by the Editor on November 29, 2010


News / 29 November 2010 | 12:51

Vice Premier Tihipko: Tax Code will not increase unemployment

Vice Premier Tihipko: Tax Code will not increase unemployment

Vice Premier Serhiy Tihipko considers it groundless to state that unemployment will increase in Ukraine with the Tax Code coming into force, he has said about this on the air of the 1+1 TV Channel.

“This will have no effect on the increase of unemployment,” Tihipko said, UKRINFORM reported.

He reminded that according to the Tax Code, the simplified system of taxation will remain for entrepreneurs and setting up of cash registers is not necessary for the entrepreneurs having the annual turnover up to UAH 300,000.

“We know the statistics and 85% of the people who till now are working on the basis of a simplified system had the realization volume less than UAH 300,000. Only those engaged in money laundering can be without work. But it was our goal,” the Vice Prime Minister added.

Tihipko expressed conviction that in three months following the Tax Code takes effect everyone will see that work continues as it was before.

The Vice Prime Minister noted that Ukraine needs the Tax Code. “If the authorities resort to the back movement, next five years we will lose in economic development. I am convinced that this will not occur. We should move ahead by correcting some moments… There is work that should be done, irrespective of whether one likes it or not,” Tihipko underscored.

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President visits tent city of businessmen protesting against Tax Code

Posted by the Editor on November 29, 2010


News / 29 November 2010 | 11:02

President visits tent city of businessmen protesting against Tax Code

President visits tent city of businessmen protesting against Tax Code

President of Ukraine Viktor Yanukovych and Prime Minister Mykola Azarov visited the tent city of businessmen protesting against the Tax Code, located on the Independence Square in Kyiv.

“First of all, I would like to say that I understand your position. We should take a look at this Code in general,” Viktor Yanukovych said, presidential press office reported.

He suggested that representatives of the businessmen created a joint working group with the Government to discuss amendments to the Tax Code. At the same time, the team of experts will be working through the document at the Presidential Administration, to provide its preliminary assessment to the President by November 29.

The President of Ukraine expressed readiness to meet with representatives of the joint working group of businessmen and representatives of the Government on December 2, in order to discuss possible discrepancies.

Referring to his own criticism of the Tax Code, Viktor Yanukovych said: “I object this Code strengthening administrative pressure of the Tax Administration on business. I strongly object that. If there is any increase in pressure, we will remove it. If veto is necessary, it will be imposed.

“The probability of veto is very high. But we can talk about it after we consider the Tax Code together,” the President of Ukraine said.

“The goal we all have is one: to bring the economy out of the shadow and stimulate the development of the country and business with tax policy. And it meets the interests of the people,” President Yanukovych said.

“I am ready to work together with you on the Tax Code and complete it with ‘wisdom’,” Viktor Yanukovych said.

At the same time, he said he does not rule out making personnel decisions: “If there is a need for that, if I see that there are grave procedural violations, which have caused this situation, and if personnel decisions are needed, I will make those decisions.”

Speaking to the businessmen, the President stressed the necessity to take their proposals to the Tax Code into account, so that the state got a real instrument of legalization and deregulation of the economy.

Viktor Yanukovych has accepted an invitation of the businessmen to tea and visited one of the tents, used as the kitchen.

Answering businessmen’s questions about their problems, particularly corruption of state officials, the President said: “I will do everything to eliminate corruption in the government. But this cannot be done overnight. And we are allies in this question. Who does suffer from corruption the most? The people do. The business does. And I am interested in overcoming this plague.”

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