Ukrainian president Viktor Yanukovych told journalists today that he had decided to veto the new tax code.
The tax code – passed by parliament two weeks ago – foresaw tax increases for many low and middle-income jobs. Many small and medium-size business owners had therefore protested against it and urged the president to veto it. While Mr Yanukovych had initially commented on the matter saying that the tax increase would be necessary to balance the budget, many officials suggested last week that he might after all send it back to parliament for reconsideration.
President Yanukovych has announced to set up a working group made up of representatives of medium and small-size business owners as well as high-ranking officials from the presidential administration. Today and tomorrow, the group is to work out amendments to the tax code which Mr Yanukovych will consider on Thursday and – given that they meet ‘the current requirements for the tax code’ (the president did unfortunately not specify what he meant by that) – send back to parliament.
An amended version of the tax code incorporating the presidential proposals could be passed by parliament with a simple majority of votes; if deputies however wish to maintain the original version, an extraordinary majority of 2/3 of the members of the assembly is needed.