Mykola Tomenko: The Government of Azarov refused to impose a Luxury Tax, because it continues to build a Ukraine for their Friends

17 June 2010, 11:34

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Mykola Tomenko: The Government of Azarov refused to impose a Luxury Tax, because it continues to build a Ukraine for their Friends

 

Mykola Tomenko, Deputy Chairman of The Verkhovna Rada of Ukraine, stated that "a new Tax Code by the Government of Azarov has immediately aroused curiosity and become a subject of discussion among the public and MPs, although no one has seen it." "This document has finally been registered at The Verkhovna Rada of Ukraine, so it is possible to analyze which of the sounding promises still remain promises", he declared.

 

According to M.Tomenko, the Tax Code fails to introduce a real estate tax, which is a great surprise. "Despite the highlight declarations of the newly-elected authorities, especially the Prime Minister, of the support of luxury tax, it is not included in the Draft Tax Code registered at the Verkhovna Rada", M.Tomenko admitted.

 

The Deputy Chairman of The Verkhovna Rada of Ukraine reminded that the Government of Yulia Tymoshenko brought forward the bill on the real estate tax twice. The bill increased the tax for apartments of more than 150 sq.m., houses of more than 300 sq.m., estates and villas of more than 100 sq. m., etc. "Thus, this ‘luxury tax´ was put to the vote twice (in March and June 2009); however, only the BYuT and Our Ukraine-People´s Self-Defence Factions supported it", M.Tomenko stated. "A great many government members and representatives of the acting authorities insisted that an apartment of less than 300 sq.m. is not a luxury, as well as a house of less than 500 sq.m., so the figures were changed for 300 and 500 sq. m. respectively", he explained. "Still, the last version must have been rejected, as its provisions are not included into the Tax Code offered for scrutiny."   

 

Mykola Tomenko stated: "It is obvious that the authorities analyzed the situation, and decided not to pay increased taxes. Thus, the popular model of the country shaped by Azarov and Yanukovych, in which the rich should share with the underprivileged, proved an ignominious failure." "This is but another example how the newly-elected authorities implement the electoral program of the President with a little adjustment: a Ukraine for our friends", M.Tomenko stated.