Archive for November 22nd, 2010

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Tax Protests

November 22, 2010

Well dear readers, today, as the President is not in Kyiv, there are protests about the new Tax Code passed by the RADA but as yet not signed into law by the President……which seems a little bizarre when they could and probably should have been held when he was at least in the country.

Threats of strikes and civil disobedience abound of course.  Not exactly a new phenomenon looking at France, Greece and the UK recently as governments come to some sense of fiscal and economic understanding of the unsustainability of their positions looking forward 10, 20 and even 50 years.

The problem is, I have yet to meet anyone who has actually seen the new Tax Code that has been passed.  Rumour control has it that the President and his Administrtion are only now looking at it.  Rumour has it he will not sign the Tax Code in its present form but will be sending it back with “suggestions”.

Let us hope that Ms Akimova is allowed to do what she was appointed to the Presidential Administration to do.

Whatever the decisions made, there will be resulting unemployment both in the private and public sector as was seen under the Balcerowicz Plan in Poland and similar plans in Czech Rep and Hungary.

There is apparantly a lot of necessary and good content within the new Tax Code, however there still remains a reasonable amount of content that could be improved.

I have some faith in Ms Akimova, she is one of the most able people in any form of government (past or present) in Ukraine…….I don’t have the same faith that she will be listened to for long enough to get something that is 90% right and 10% flawed……after all there is no such thing as a perfect tax system or everyone would have the same system…..which we don’t even within the EU.

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