Ukraine: Presidential veto of the new tax code?

The new tax code passed by Ukrainian parliament last has sparked protests in Ukraine, many of them calling upon the president to veto it.

The new tax code foresees a dramatic tax increase for many low and middle-income jobs such as hairdressers, street vendors and taxi drivers. Several thousand business owners affected by the law gathered in Kiev in the last days (their biggest event yet taking place today) to protest against the law and urge president Viktor Yanukovych to veto it. Last Friday, however, Mr Yanukovych already declared that he saw the tax increase inevitable to cope with the recession.

The president has 15 days, i.e. till December 3,  2010, at the end of which he either has to sign and promulgate the law or return it to parliament for reconsideration (‘veto’) with amendatory observations. The tax code would then only come into force in its original form if at least 2/3 of the membership of the Verkhovna Rada vote for repeated adoption. However, a new version including the president’s proposed amendments would only need half of the deputies to come into force.

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