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Now this bill is too far from what the state and the economy need, the Ukrainian MP said.
Ukrainian parliamentarian Andriy Nikolaienko says the bill on increased royalties on iron ore production will undermine the economy of Ukraine.
Read alsoPayments of royalties from iron ore production almost five times up in 2012-2018
"Now this bill is too far from what the state and the economy need. It cannot be enacted. I'm afraid that all the changes and constructive proposals to it, as always, may be rejected due to 'turbo mode' [fast adoption of bills by parliament]," he told Ukraine's TV Channel 24 on October 7.
"We realize the importance of filling the budget, but if the parliament introduces amendments to the Tax Code in a hurry, entire sectors of the economy will be in danger of destruction. A mining and processing plant located in Kryvyi Rih, the city where our president was born, will be one of the first to suffer losses. After it shuts down, social tension will reign. We need a reasonable balance. We need to increase taxes, but not to such limits," Nikolaienko added.
As UNIAN reported earlier, last week, Ukraine's parliament failed to consider draft law No. 1210 in the first reading, which provides for a significant increase in royalties for iron ore production and double tax rates on processed products. Economists, industrialists and experts repeatedly opposed the bill's provisions. If the document is passed, it will be several times cheaper to import ore from Russia, according to economists. Moreover, Ukrainian enterprises will be forced to halt production due to unprofitability; investors will stop injecting funds into upgrading; companies will lose global markets due to lack of competitiveness, while tens of thousands of Ukrainians will lose jobs.