For the second time, Govt to introduce to the Parliament the legislation that Ukraine needs
28.07.2014 | 18:08
Department of Information and Communication of the Secretariat of the CMU

The Cabinet of Ministers of Ukraine is submitting again to the Verkhovna Rada of Ukraine the laws that the country needs, stated Ukrainian Prime Minister Arseniy Yatsenyuk at a briefing at the Government House on Monday, July 28.

Arseniy Yatsenyuk reminded that on July 24 "due to unpredictable and unannounced collapse of the coalition had been failed to pass the key laws that were necessary for Ukraine. "These bills in question amend the State Budget of Ukraine for 2014, tax legislation, as well as "the law, of which the Russian Federation is most afraid, but which Ukraine needs - the joint management and modernization of Ukraine's unified gas transit system."

He stressed that the failure of these laws leads to a lack of funding for the Ukrainian Armed Forces. The Prime Minister recalled that the Ministry of Finance of Ukraine clearly told that from August 1, "we will have no money to pay salaries to the Armed Forces, National Guard and all those defending Ukraine."

The failure of these bills, according to the PM, will lead to the lack of finances for the infrastructure restoration in the eastern regions and support for Ukraine as a whole.

Arseniy Yatsenyuk informed about a conversation with the Managing Director of the World Bank and the IMF, "The failure of these bills means a failure of the program with the International Monetary Fund and the World Bank."

The Prime Minister has underlined that the Government is submitting again to the Parliament the bills that the country needs. Arseniy Yatsenyuk addressed to all MPs, "regardless of their political color and desire to win the next parliamentary election, to come to the Verkhovna Rada of Ukraine on Thursday and vote for those laws that are necessary for the Ukrainian state."

The Prime Minister highlighted key points of the bills that the Government would submit to the Parliament.

"In the draft amendments to the State budget we offer additional funding for the Ukrainian Armed Forces, the National Guard and all those engaged in the anti-terrorist operation in the amount of UAH 9.1 billion," emphasized the PM at a briefing at the Cabinet of Ministers on Monday.

"The second item of expenditure is the restoration of eastern Ukraine. We offered about UAH 8 billion, but after adjustment by the end of this year we envisage the amount of UAH 3.3 billion to rebuild the destroyed infrastructure in the east," stated the PM.

He also added that it was necessary to think not only about eastern Ukraine, but also about the entire country.

Moreover, UAH 1 billion separately for the socio-economic development of the regions will be envisaged in Ukraine's state budget.

At the same time, he said, despite the complexity of the economic situation and folding activity of foreign investors, the Government "found the possibility of not reducing social spending, not reducing the actual size of salaries, not sending all on unpaid leave, but leaving the same level of social welfare."

"Ukrainian MPs and members of the Cabinet will receive only the bare salary. Thus, we are to save UAH 400 million."

The Ukrainian Government also proposes to reduce the costs of all controlling bodies and inspections by 70%. The PM noted that today, besides the tax inspection, business suffers from 80 different inspections "basically raising money for their pockets and in no positive way affecting development of the Ukrainian economy":" The Government proposes to ban all types of checks except for the inspections of the State Fiscal Service, as well as those, which need a personal decision of the Government."

The Government is to introduce a temporary 1,5 % military tax - as additional to the personal income tax. This temporary tax will be charged till the end of this year: "All 1.5% will go directly to fund the Armed Forces."

A separate block of questions that causes the greatest resistance in the Parliament, is the taxation of highly profitable businesses," he said, recalling that four months ago with the adoption in the Parliament of the legislative package of the Government, we managed to tax only one oligarch, Akhmetov - four times was increased rental rate on ore".

"Now we want to do what we didnt manage to do four months ago due to the lack of votes in the Parliament to introduce the additional royalties on oil and gas, as that is super-profitable," he said.

"All who are earning excess profits must honestly and fairly share in the current war conditions", emphasized Arseniy Yatsenyuk.

As to the draft bill On changes to several Ukrainian laws reforming the management system of the Ukrainian GTS, Prime Minister Arseniy Yatseniuk has said the Ukrainian gas transportation system (GTS) was and will be a state property.

"The GTS can only be operated by a company in which the state has a majority stake, i.e. 51%, the remaining 49% will be held exclusively by Europeans companies from the EU and the U.S., which have appropriate certificates and licenses," he underlined at a briefing on Monday.

Under the bill, the final list of the GTS managing company members must be approved by the Ukrainian parliament, Arseniy Yatseniuk added.

Firstly, we need to hold an extraordinary session of the Parliament. Secondly, all MPs must come to the Parliament. Thirdly, the MPs must vote for all the bills submitted by the Government and which are in line with propositions submitted by the MPs. Adoption of amendments to the State Budget, Tax Code, approval of a decision on the Ukrainian gas transportation system are the key issues that should be on the agenda of the country," stated Arseniy Yatsenyuk.

If we adopt these bills, we will have money to finance the Armed Forces, rebuild Donetsk and Luhansk and help the whole of Ukraine in general. And we will get $1.5 billion from the International Monetary Fund and the World Bank. If we don't adopt them, we will not get it.

So, I urge to come to the Parliament and vote. This will not affect their ratings. It is the political responsibility of the Ukrainian Government, and weve assumed this responsibility, summed up the PM.


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