New Tax code spells troubles for businessmen, expert claims

“If cows are milked too often they stop producing milk,” Yakymiv says. The proposed Tax code opens the way to unprecedented arbitrary rule and terror by controlling agencies. The Tax Administration has never had so much authority. Tax police inspections alone can stonewall the operations of a business for 60 days. Tax police will have the power to search the homes of businessmen, arrest their bank accounts and assets. It will be practically impossible to appeal such actions of the tax police,” Yakymiv stresses. 

The draft code will legalize squealing, the banking secrecy will stop to exist as the banks will have to submit information on their clients, six new types of inspections will be introduced and fines will grow 5-fold. In addition, the duration of inspections will increase, there will be a new tax on bank deposits and one-man businesses will be forced to pay UAH1,000 to 2,000 in taxes, not UAH200 as before. This will put the end to mom-and-pop businesses,” Yakymiv goes on. 

The tax code draft absolutely ignores the principle under which “the haves” must pay higher taxes.

The draft Tax code cannot be approved at break-neck speed, it must be revised and complemented by experts and opposition, Yakymiv summed up.

Comment by ZIK

Unless the invalid draft Tax code is recalled by the cabinet, businessmen will go on strike all over Ukraine, coordinator of the movement “Initiative of Entrepreneurs of Small and Medium-Sized Businesses” Andry Yakymiv announced at the session of the Lviv press club June 25.  

According to him, his movement is raising signatures to recall the draft from parliament.
In all, over 100,000 signatures have already been raised in Ukraine. Strike committees are being formed in big cities.