On Monday, the Cabinet of Ministers of Ukraine submitted the Draft State Budget for 2011, however, Volodymyr Lytvyn, Chairman of The Verkhovna Rada of Ukraine, forwarded it back to the Government
V. Lytvyn made this announcement at the press conference in Berezne town of Rivne region on Thursday.
On the request of the journalists, he explained that he was guided by the July resolution of the Verkhovna Rada of Ukraine on the all-Ukrainian discussion of the draft Tax Code, and took into the consideration the common positions of the authorities and the public that the budget for the next year shall be based on a new Tax Code.
According to V. Lytvyn, on September 7, the Parliament listened to the results of the Tax Code discussion and confirmed that the budget shall be based exclusively on the new tax principles.
V. Lytvyn forwarded the draft Tax Code to the Government with the proposal coinciding with the proposal of the President of Ukraine and guidelines of the Council of Regions from September 9, 2010 - the Cabinet of Ministers shall draft the budget based on the new Tax Code, taking into consideration the norms of the Budget Code. "I am convinced that the decision is right and I had all the reasons not to register the submitted document to forward it to the parliamentary Committees", he explained.
The Head of the Parliament stated that the governmental document was registered only as the incoming act. "I scrutinized and discussed the issue, consulted the specialists of the judicial department and adopted this decision", V. Lytvyn stated.
V. Lytvyn emphasised that "the logic should be demonstrated: everybody is waiting for the new Tax Code to make our tax legislation comprehensible, transparent and simple in administration."
The Head of the Parliament called for introducing moderate taxes for the individuals with average income and relevant taxes for those with high income.