ON THURSDAY, NOVEMBER 18, PLENARY MEETINGS OF THE SEVENTH SESSION OF THE VERKHOVNA RADA OF UKRAINE OF THE SIXTH CONVOCATION WERE HELD

At the beginning of the morning sitting, Volodymyr Lytvyn, Chairman of the Verkhovna Rada of Ukraine, briefed on the results of work of the Verkhovna Rada of Ukraine during the plenary meetings on November 17.

The Head of the BYuT Faction I. Kyrylenko read out the appeals of the small business representatives who assembled in the square near the Verkhovna Rada to the President of Ukraine, the Verkhovna Rada and the Cabinet of Ministers with a demand to reject the Tax Code.

The businessmen stated that if the Tax Code were adopted, they would "protect their right for life and entrepreneurship by means of continuous strikes and insubordination to authorities."

The deputies from the BYuT Faction approached the governmental box, put down their copies of the draft Tax Code before the government members, and strewed out small coins.

The Chairman called parliamentarians to order.

Representatives of the Party of Regions and the Lytvyn Bloc suggested prolonging the afternoon sitting till the scrutiny of the draft Tax Code is completed. O. Zarubinskyi, People´s Deputy of Ukraine, suggested scrutinizing a personnel issue on the changes in the parliamentary committees.

The Resolution "On Amendments to the Resolution of the Verkhovna Rada of Ukraine "On Election of Chairmen, First Deputy Chairmen, Deputy Chairmen, Secretaries, Members of the Committees of the Verkhovna Rada of Ukraine of the Sixth Convocation and Election of the Chairman, First Deputy Chairman, Deputy Chairman, Secretary, and Members of Ad Hoc Supervisory Panel of The Verkhovna Rada of Ukraine on Privatization" was presented by Volodymyr Mareenvko, Chairman of the Committee on Rules of Parliamentary Procedure, Ethics and Support to Work of The Verkhovna Rada of Ukraine.

The Chairman put draft resolution to the vote.

The Verkhovna Rada of Ukraine passed the Resolution "On Amendments to the Resolution of the Verkhovna Rada of Ukraine "On Election of Chairmen, First Deputy Chairmen, Deputy Chairmen, Secretaries, Members of the Committees of the Verkhovna Rada of Ukraine of the Sixth Convocation and Election of the Chairman, First Deputy Chairman, Deputy Chairman, Secretary, and Members of Ad Hoc Supervisory Panel of The Verkhovna Rada of Ukraine on Privatization." The People´s Deputies resolved to recall Derkach Mykola Ivanovych from the office of the Chairman of the Committee on Budget and Baranov Valerii Oleksiovych from the office of the Deputy Chairman of the Committee on Construction, Urban Development, Housing and Communal Services and Regional Policy pursuant to the submitted resignation appeals.

The Verkhovna Rada appointed Baranov Valerii Oleksiovych, People´s Deputy of Ukraine, "Lytvyn Bloc" faction to the office of the Chairman of the Budget Committee; Derkach Mykola Ivanovych, People´s Deputy of Ukraine, "Lytvyn Bloc" faction to the office of the Deputy Chairman of the Committee on Construction, Urban Development, Housing and Communal Services and Regional Policy.

The Parliamentarians started to scrutinize Chapter VI. On Excise Duty.

The People´s Deputies K. Liapina and P. Symonenko insisted on the voting on their amendments to the clause of this chapter that had been rejected by the Committee.

The amendments were rejected.

The People´s Deputies scrutinized proposals to Chapter VIІ. Charge for the First Registration of a Motor Vehicle of the Draft Tax Code.

The People´s Deputies A. Boliura and P. Symonenko insisted on the voting on their amendments to the clause of this chapter.

The amendments were rejected.

Scrutinizing Chapter ХІ. Charge for the Use of Mineral Resources, the People´s Deputies upheld the amendments of V. Khomutynnik, People´s Deputy of Ukraine, by 244 votes. The Chapter unifies two tax charges (the charge for the use of mineral resources for the extraction of minerals, and the charge for the budget-funded exploration works) into a single charge for the use of mineral resources for the extraction of minerals.

The Parliamentarians discussed the amendments to Chapter ХІІ. Local Taxes and Charges.

The Chapter introduces the real estate tax for the immovable property other than a land plot. The tax is payable by the individuals and legal entities, including non-residents, real estate owners.

The following assets are exempt from tax: housing facilities in the ownership of the state or territorial communities (in the common ownership); housing facilities in the zones of alienation and compulsory resettlement; the premises of the family child care homes; garden houses (not more than one for one taxpayer); the housing facilities in the ownership of families with three and more children (including the children adopted); hostels.

The tax rates are fixed by the village, township or city council for 1 sq. m. of the total floor area of the real estate object. Twelve local taxes and charges are abolished.

The People´s Deputies scrutinized amendments to the clauses of Chapter ХІІІ.  Land Tax. The parliamentarians upheld the amendment of P. Kostenko, whereby enterprises, organizations, establishments, non-governmental organizations of physical culture and sports and their premises, as well as the premises of the national and international contests, and educational-training facilities of the national teams of Ukraine and sports reserve of Ukraine, athletic complexes of Olympic and Paralympic teams registered in the Cabinet of Ministers of Ukraine are exempt from land tax, provided the corresponding sums of land tax are directed for the development of physical culture and sports in Ukraine.

In the end of the morning sitting, the People´s Deputies put the bill "On Amendments to the Standing Orders of Ukraine regarding the Voting Method" on the agenda.

In the beginning of the afternoon sitting, the People´s Deputies scrutinized the bill "On Amendments to the Standing Orders of Ukraine regarding the Voting Method." People´s Deputy of Ukraine V. Mareenko presented the bill. He stated that the bill amended clauses 37, 47 and 149 of the Standing Orders of the Verkhovna Rada of Ukraine. Pursuant to the bill, open vote is conducted in the following way: by means of an electronic system with the fixation of the voting results - individual voting with the possible publishing of the voting results of each People´s Deputy. On demand of the People´s Deputies, the results of the voting may be published on the informational panel of electronic system in the sitting hall; by a show-of-hands vote (in case there are no technical facilities to vote with the help of electronic system).

 According to the legislative document, the resolutions are adopted by the Verkhovna Rada of Ukraine by means of individual voting, except cases, envisaged by the Standing Orders, when the secret votes held through the ballot paper submission. The bill states that discussing the amendments to the Constitution of Ukraine, its preliminary adoption (clause 155 of the constitution for Ukraine) or adoption in entirety (clause 158 of part 1 of clause 156 of the Constitution of Ukraine) is put to the vote.

The Verkhovna Rada adopted the bill as a basis and in its entirety by 253 votes.

The People´s Deputies put the bill on amendments to certain legislative acts of Ukraine (regarding access to the public information) on agenda, and continued scrutiny of the clauses of Chapter ХІV. Special Tax Treatments.

None of the amendments was adopted.

The parliamentarians voted for several clauses in the second reading.

People´s Deputies upheld the rejected amendment of O. Horoshkevych, People´s Deputy of Ukraine, to clause 340, whereby "the State guarantees use of legislation on the rights and obligations of investors in the course of fulfillment of tax obligations, as defined by the production distribution agreement, except when the legislation restricts tax, charges rates or lifts them."

The Parliamentarians completed clause-by-clause scrutiny of the draft Tax Code and commenced scrutiny of Chapter XIX. Final and Transitional Provisions.

F. Yaroshenko, Minister of Finance of Ukraine, delivered the final speech. He suggested scrutinizing all the amendments that day, and addressed the People´s Deputies with a request to adopt the draft Tax Code.

Representatives of factions declared that such an essential document should not be scrutinized in haste. They suggested analyzing the amendments adopted.

Chairman of the Committee on Taxation and Customs Policy V. Khomutynnik repeated the adopted norms of the bill.

V. Lytvyn, Chairman of the Verkhovna Rada of Ukraine, concluded, "We are aware of the complexity of this issue. However, it does not mean that we would stop discussing this issue after the Code is adopted. A compromise between the tax payers and the state needs and obligations in the social sphere shall be reached. "

The Verkhovna Rada adopted the draft Tax Code in the second reading and in its entirety by 269 votes.

V. Lytvyn, Chairman of the Verkhovna Rada of Ukraine, declared that the Committee on Taxation and Customs Policy shall analyse the specifications jointly with the Cabinet of Ministers. Then it should be implemented pursuant to clause 131 of the Standing Orders, and sent to the President of Ukraine for signing.

The Chairman adjourned the afternoon sitting.

The next plenary meeting will be held on Friday, November 19.