Agro Perspectiva

Yushchenko vetoed financial crisis influence minimizing Law

13.01.2009 13:32 "Agro Perspectiva" (Kyiv) — In response to Ukrainian Ministry of Finances, Ministry of Justice and State Customs Service appeal, President Viktor Yushchenko has (up to art. 94/part. 2 of Ukrainian Constitution) used his veto right to Ukrainian Law “About Bringing Changes to Some Ukrainian Legislative Acts regarding Minimizing of Global Financial Crisis Influence upon Domestic Industry Development,” reported President press-service.

As to press-service, this Law has violated a series of Ukrainian supreme legal force

acts/international obligations.

Firstly, press-service says, this Law has temporary (until Jan 01/11) exempted some companies from entry duties payments for imported equipment (and its component parts) of certain goods groups. Also, this Law has given right to Cabinet to establish import procedure/volumes and compile list of these companies.

President press-service admits giving Cabinet right to compile list of industrial companies and setting volumes of goods subject to abovementioned privileges not only contradicts to Ukrainian Constitution (stipulating that taxation system, taxes and duties should be established exclusively up to Laws and Constitutional provision on equality of all property right entities before Ukrainian legislation), yet also creates preconditions for some business entities to lobby their interests.

It is to be reminded, Ukrainian Law “About Bringing Changes to Ukrainian Law “About Ukrainian 2005 State Budget” and Some Other Ukrainian Legislative Acts” established 5-year moratorium for expansion of currently efficient privileges and granting new ones.

Secondly, this Law stipulates that purchases of goods, works and services at State cost should be temporary (until Jan 01/11) made only from domestic producers of these goods, works and services (except for goods which aren’t produced in Ukraine).

However, President press-service says this Law provision contradicts to Ukrainian obligations to WTO in what concerns Ukrainian indisputably strict keeping to General Agreement on Tariffs and Trade (1947) provision on creating for goods produced on any Agreement country territory and shipped to any Agreement country territory of regime which should be as favorable as regime created for similar domestically produced goods. Press-service affirms this Law provision also contradicts to EU Directives main principles and therefore will prevent free trade zone creation.

Thirdly, date of this Law becoming efficient (Jan 01/09, as it is stipulated by this Law itself) was fixed without considering of changes stipulated by Ukrainian current legislation, – which influence State budget revenues forming and thus contradict to art. 27 of Ukrainian Budgetary Code.