The Bill (Reg.No.1245) proposes to introduce a differentiated Duty Rate for Touring Events and Performances, by increasing it from 3% to 20% for foreign artists, but keeping it at the same 3% level for home artists.
Committee members noted that the issues dealt with by the Bill Sponsors, Yu. Kostenko and I. Zaiats, are extremely pressing, since the protection of the National cultural product is very poor. ‘However, the solution as offered is beset with problems´, commented the People´s Deputies.
They also expressed their criticism of clauses to the Bill. They noted the absence of such notions as ‘Home artist on tour´ and ‘Foreign artist on tour´. The latter, they believe, will make it impossible to implement the provisions of this Bill, should it be adopted. The People´s Deputies stressed that, ‘it is not clear by what attribute an actor shall be deemed foreign: by his citizenship, place of residence, location of his permanent ‘in-house´ place of performance, or others´. In addition, consider Committee members, the establishment of different taxation rates for touring performers is in conflict with The Constitution of Ukraine and the Law ‘On Taxation System´.
Attention was also drawn to WTO rules and principles to be complied with by Ukraine in shaping its protectionist policy.
V. Vovkun, Minister for Culture and Tourism, notified the auditorium of a Bill, soon to be completed by the Cabinet of Ministers of Ukraine, appertaining to the National Cultural Product, aiming to protect the National provider of Culture and Art related services. Also, the Tax Code of Ukraine is due for adoption in July of this year, and will cancel the Law ‘On Touring Events and Performances in Ukraine´.
Drawing on the above information, the Committee resolved to recommend that the Cabinet of Ministers takes into account the proposals by the People´s Deputies of Ukraine, Yu. Kostenko and I. Zaiats, in drafting the said Bill.