ON FRIDAY, DECEMBER 3, THE PLENARY WEEK OF THE SEVENTH SESSION OF THE VERKHOVNA RADA OF UKRAINE OF THE SIXTH CONVOCATION CONCLUDED
Volodymyr Lytvyn, Chairman of the Verkhovna Rada of Ukraine, informed on the results of work of the Verkhovna Rada of Ukraine at the plenary meetings on December 2.
Representatives of the Deputy factions suggested listening to the report of the Cabinet of Ministers on the state of economic reforms in Ukraine during the Government Question Hour.
The Chairman announced that the members of the Cabinet of Ministers headed by Serhii Tihipko, Deputy Prime Minister of Ukraine, attended the meeting.
The BYuT-Batkivshchyna faction gave the following question to the Deputy Prime Minister: how should the shadow big capital that does not pay taxes to the State Budget but enriches high-ranking corruptionists come to the light?
S. Tihipko responded, "It is necessary to alleviate the tax burden for all the business entitites to make big and medium-sized business legal and broaden the fields of taxation base. Thus, the Code reduces the income taxes, value-added taxes and dividends tax. On the other hand, we tried to strengthen the tax administration and eradicate shady tax evasion schemes for big, small and medium-sized business."
The People´s Deputies inquired about the date of denunciation of the Agreement between the Government of the USSR and the Government of the Republic of Cyprus on Prevention of Double Taxation of Income and Property, since only for 9 months of 2010, UAH 24 billion were ‘washed away´ through the territory of Cyprus, while the sum of evaded taxes totals UAH 40 billion?
S. Tihipko reminded that the Cyprian party had been recalling signing of the denunciation project for four times, and in March 2008 denied its obligation to sign the agreement because of remarks to it. A complicated process of negotiations is ongoing. S. Tihipko stated that if the Cyprian Party failed to give a response on the the agreement in the nearest time, the Ukrainian Party would made unilateral steps to meet the new agreement.
Another question of BYuT-Batkivshchyna faction concerned the loss of working places of 2-5 million citizens due to the adoption of ‘a repressive´ Tax Code and the Governmental efforts to prevent it.
S. Tihipko informed that 1 million 316 thousand subjects of a simplified tax system had been registered, while 1 million 279 thousand employees worked for them. 85% of entrepreneurs working under the simplified tax system have annual turnover up to UAH 300 thousand. "If the necessary decisions have been made earlier, we would not have had such numerous job cuts." The Deputy Prime Minister reminded that the Verkhovna Rada of Ukraine adopted the Tax Code in a new version, and a simplified tax system remained unchanged.
The Deputy Prime Minister was also asked about the governmental actions to assist the citizens in the necessitous circumstances due to the rapid increase of prices for food stuffs and public utility services. He explained that the state system allowed for the rise of the minimal wages rate, minimal living wages and the tariff of the unified tariff system every quarter in case of a rapid increase of prices. It would provide indexation of pensions and wages for the poorest groups of the population.
Asked about the drafting of the state budget for the next year, S.Tihipko responded that the Government expected the internal debt of Ukraine to grow to UAH 348 billion, or 32,1% of GDP. Although this figure is not critical, the shortfall in the budget shall be covered.
The Deputy Prime Minister answered other inquiries of the People´s Deputies.
The Chairman read out the deputy inquiries.
Deputy Minister of Education and Science Viktor Ivchenko presented the bill on amendments to several legislative acts of Ukraine regarding vocational training management. The bill was rejected.
The Verkhovna Rada adopted the following bills as a basis: on Amendments to several Legislative Acts regarding the Intellectual Property; and on Amendments to several Legislative Acts of Ukraine regarding Clinical Testing of Medicaments.
The People´s Deputies scrutinized the bill on Amendments to the Law "On the State Budget of Ukraine for 2010" (re Higher Specialized Court of Ukraine as the Chief Administrator of Budgetary Funds).
People´s Deputy Oleksandr Peklushenko presented the bill "On certain Aspects of the Budgetary Process Organization in 2010." The bill was adopted as a Law by 255 votes.
The bill on Amendments to Clause 81 of the Civil Procedural Code of Ukraine (re Compensation of Expenses for the Information and Technical Support of the Scrutiny of Cases on Validation and Implementation of the Resolutions of Foreign Courts in Ukraine) was adopted as a basis. The following bills were rejected: on amendments to Chapter ІI "Final Provisions" of the Law "On Amendments to item 1 of Chapter XI "Final Provisions" of the Law of Ukraine "On the Safety and Quality of Food Stuffs" (re market sale of domestic produce), and on amendments to the Civil Procedural Code of Ukraine and the Code of Ukraine of Administrative Legal Proceedings regarding the top level of compensation for the expenses for the legal aid.
In the end of the plenary meeting, the People´s Deputies presented their motions, appeals and announcements.
Mykola Tomenko, Deputy Chairman of The Verkhovna Rada of Ukraine, adjourned the plenary meeting.
On 6-10 December, the People´s Deputies will work in the committees and factions.
The Parliamentary Hearings "Ukrainians in the World" will be held on 8 December.
The next plenary meeting of the seventh session will be held on Tuesday, 14 December.