The Federation of Trade Unions of Small and Medium Entrepreneurs of Ukraine is opposed to the adoption at second reading by the Verkhovna Rada of Ukraine of the draft Tax Code submitted by the Cabinet of Ministers. This is stated in a statement by the federation signed by its chairman Viacheslav Roy.

"We support the demands of organizations uniting small and medium entrepreneurs regarding the text of the draft Tax Code," reads the statement, UKRINFORM reported.

The federation believes that the draft Tax Code proposed by the government "will destroy the simplified tax system for legal entities, significantly restrict it to individuals, increase the tax burden on small and medium business, generate excessive pressure on businesses by the tax administration, and aggravate the problem of shadowing wages."

"We believe that the adoption and subsequent practice of using the government's Tax Code will inevitably bring a worsening of the social situation of tens and hundreds of thousands of employees from enterprises that are currently operating under the simplified tax system," reads the statement.

On October 7, 2010, the Verkhovna Rada adopted the draft Tax Code at first reading, and on November 16 it is planning to consider the document at second reading.

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