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Thousands Protest New Tax Code in Ukraine

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TEHRAN, March 26 (ICANA) – Critics of a new Tax Code in Ukraine are taking part in a cross-country auto rally to protest the code's impact on small businesses. Most small businessmen are unhappy with the economic situation in the country.
Saturday, March 26, 2011 11:31:39 AM
Thousands Protest New Tax Code in Ukraine

Protesters want the government to maintain the simplified tax system but review the Tax Code that was adopted in fall. They call the new tax code unfair because it narrows the rights of small and medium business men by adding more administrative rules and procedures.

The auto rally under the motto "Take the country back from oligarchs and return it to the people» started in the western city of Lviv and the eastern city of Luhansk. A convoy of 150 cars crossed the country. Participants said they were stopped by the police several times on suspicion of being involved in car accidents.

The new Tax Code was adopted earlier in December. Back then the protesters called the President's Code unfair because it focuses on small businesses.

Thousands of Ukrainians turned out in angry demonstrations across the country. Now that the dust has settled, Ukrainian entrepreneurs have put forward their amendments to improve the simplified tax system. But the draft law is already registered in the Ukrainian Parliament and many consider it a victory for small businesses and individual entrepreneurs.

However, the Government has established a separate working group to improve the law which, they hope, will start pulling half of the economy out of the doldrums and fill cash-starved budget coffers.

The Government has not yet made clear if the authorities will give in to the demands of protesters. The consideration of the draft law on the simplified taxation system is still shrouded. Meanwhile protesters say they won't back off until tax privileges for small businesses are preserved.

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