November 27, 2010

Azarov's Tax Code Causes Public Protests

Ukraine's parliament passed the Tax Code proposed by Prime Minister Azarov (Party of Regions) and his government. Now the Tax Code waits for President Yanukovych's (Party of Regions) "approval". In brief, the Azarov's Tax Code is draconian. It offers tax incentives to the corporations and high-income households while it shifts a tax burden on small- and medium-size businesses and middle-income and low-income households. The bill was passed quietly without any public discussion. The Azarov's Tax Code, however, caused massive public protests when the legislation became publicly available. It consists of several chapters written by both local and foreign experts. Chapter 14 of the Tax Code is the most controversial. If it remains unchanged, it will drive the small-size business (e.g. sole proprietorship) to a brink of bankruptcy. When the government faced public protests, Mr.Azarov (Party of Regions) played the nastiest political trick. He said that the small- and medium-size businesses would bankrupt the welfare and social security system if they opposed the new legislation. Despite his provocative announcement, Ukrainians seem to be united. If President Yanukovych signs the bill, protesters promise to repeat the Orange Revolution. 
Here are links to videos featuring public protests:


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