The new Tax Code reduces the rights and powers of the tax administration by 30% compared to those currently enjoyed by the administration, Deputy Chairman of the State Tax Administration of Ukraine Serhiy Lekar has said on ICTV Channel.

"The Tax Code reduced the rights of the tax administration by 30% and at the same time increased penalties on the tax authorities for the violation of the law," he said, UKRINFORM reported.

Lekar said that any action that is not done in line with the Tax Code envisages the liability of the tax service, the state, and entrepreneurs.

He said that the process of the modernization of the tax service was currently continuing. "The most important thing to do is to reduce the number of meetings between tax inspectors and taxpayers," Lekar said.

Ukrainian President Viktor Yanukovych earlier spoke against the strengthening of administrative pressure by the tax administration on businesses. "If there is any pressure, we will remove it," he said.

As reported, First Deputy Prime Minister Andriy Kliuyev supported the demands of entrepreneurs to reduce the grounds for the administrative freezing of property in the new Tax Code. In addition, he supported a number of other proposals by entrepreneurs with respect to the audits of taxpayers by supervisory authorities.

Small- and medium-sized businesses are protesting in Ukraine and demanding that the president veto the Tax Code.

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