The budget of the Government for 2004, adopted by the votes of the parliamentary majority, will be remembered by the citizens of Ukraine not only for the reduction of the minimum wage from 237 to 205 UAH. Against the backdrop of unprecedented rises in the price of bread and other food products, such a New Year's "gift" to fellow citizens turned out to be not the only surprise of the budget.
The law on the 2004 budget carried out a serious revision of tax legislation in the direction of intensifying the blow to the social interests of citizens. From the new year, charitable assistance, funds allocated for occupational safety, the maintenance of medical institutions and the social sphere of enterprises, the profits of enterprises of public organizations of disabled people, and coal issued to the families of deceased miners are subject to taxation.
The Government and its majority apparently decided to implement the principle: "medicine - only for the wealthy." How else can one explain the decision to impose VAT on medicines and medical services, and to increase eightfold the excise tax on alcohol used for the production of medicines? Such decisions make it impossible for the majority of citizens to receive medical care.
From the new year, our fellow citizens will have to pay a cumulative value-added tax on the sale of apartments, which will generally make such sales impossible. The same tax will be levied on the sale and delivery of newspapers and the sale of books.
Ukrainian peasants have also not been left out of "additional" attention. As a result of the introduction of norms unique to world practice regarding VAT on the export of agricultural products, an additional 2 billion hryvnias will be pumped out of the countryside. The cost for peasants of registering land ownership has been increased by 20%.
The "Our Ukraine" faction asserts that the Government's statements about reducing the tax burden are an empty declaration. What occurred was not a reduction but a substantial increase in taxes, which will deal a painful blow not only to citizens' pockets but also to the Ukrainian economy. Against this backdrop, statements about the lack of funds to introduce a minimum wage of 237 UAH look cynical.
The "Our Ukraine" faction insists on revising the anti-social 2004 budget with the cancellation of the tax norms included in it and the introduction of a minimum wage of 237 UAH while simultaneously restoring inter-position salary levels in the pay of educators, doctors, scientists, and cultural workers.