Ukraine’s parliament this week passed several important and some controversial bills before its 2-month summer break, which began July 5 at around 1 p.m. The third session will begin on September 3.
On July 3, a bill on
promissory notes was passed in its first reading.
The bill, which was supported by 246 parliamentarians,
proposes to restructure the budget’s debt through emission of promissory notes.
It also proposes to allow the government to return VAT – value added tax by
promissory notes. Promissory notes are expected to be issued for up to 5 years,
with a yield that does not exceed 5 percent. The bill has been widely criticized
by the opposition and many experts.
On the same day members of parliament approved the
second reading of a draft law on transfer pricing. The bill, which was
submitted by the Ministry of Income and Taxes and supported by 231 MPs,
provides a mechanism to combat the withdrawal of profits in offshore zones and
countries with low taxation. The government says the bill will bring an additional
Hr 20 billion to state coffers and create an effective system of control over
transfer pricing.
Members of parliament rejected all amendments
submitted by MPs mainly from opposition groups (about 460 amendments),
including the determination of the normal price through exchange trading, price
determination framework of setting the base price at the time of signing the
contract and the use of price controls in the domestic operations.
A bill on transparency of ownership in the media was
one notable bill passed. Supported by 322 MPs, the law provides that the
founder and co-founders of media who wish to obtain a certificate of state registration
for printed media provide information about its founders, co founders and its
related entities.
The same information must be submitted by the legal
entities wishing to obtain or renew a license to broadcast. In addition, they
must provide information about the distribution of shares of authorized
capital. If the founder is a joint-stock company, it shall provide a list of shareholders
owning shares in excess of 5 percent.
Kyiv Post staff
writer Svitlana Tuchynska can be reached at [email protected].
