{"id":2478,"date":"2024-11-01T13:20:34","date_gmt":"2024-11-01T11:20:34","guid":{"rendered":"https:\/\/avnbmu.com.ua\/?p=2478"},"modified":"2024-11-06T15:47:37","modified_gmt":"2024-11-06T13:47:37","slug":"the-association-appealed-to-the-president-with-a-request-to-veto-the-law-of-ukraine-on-amendments-to-the-tax-code-of-ukraine","status":"publish","type":"post","link":"https:\/\/avnbmu.com.ua\/en\/news\/the-association-appealed-to-the-president-with-a-request-to-veto-the-law-of-ukraine-on-amendments-to-the-tax-code-of-ukraine\/","title":{"rendered":"THE ASSOCIATION APPEALED TO THE PRESIDENT WITH A REQUEST TO VETO THE LAW OF UKRAINE ON AMENDMENTS TO THE TAX CODE OF UKRAINE"},"content":{"rendered":"\n

The Association appealed to the President of Ukraine V.O. Zelenskyii, as the guarantor of the Constitution, with a request to apply the veto<\/strong> to the Law of Ukraine dated 10 October 2024 No. 4015-IX \u2018On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Ensuring the Balance of Budget Revenues during the Period of Martial Law\u2019 (hereinafter – Law No. 4015), which has been on his signature since 15 October 2024, with its return for reconsideration by the Verkhovna Rada of Ukraine.<\/p>\n\n\n\n

The reason for this appeal is an unprecedented violation of the current legislation when the Verkhovna Rada of Ukraine adopted this Law.<\/p>\n\n\n\n

As previously reported, Law No. 4015 amended paragraph 252.8 of Article 252 of the Tax Code of Ukraine by adding paragraphs stipulating that the actual selling price of extracted minerals (mineral raw materials) of commercial products of a mining company made of rocks classified under codes 2517 and 2505 according to the Ukrainian Classification of Goods for Foreign Economic Activity<\/strong> shall be determined at the higher of<\/p>\n\n\n\n

at the actual selling price of the respective type of commodity products of the mining enterprise – extracted minerals (mineral raw materials) under supply contracts;<\/p>\n\n\n\n

at the price of a unit of commercial output of a mining enterprise – extracted minerals (mineral raw materials), determined according to the methodology approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1374 dated 15 October 2004, for granite as raw material for rubble stone, but not less than 6, 50 USD per 1 tonne, and for sand as a refractory raw material, but not less than 5.00 USD per 1 tonne<\/strong>, converted into UAH at the exchange rate of the National Bank of Ukraine as of the first day of the month following the tax (reporting) period (hereinafter – the \u2018Mineral Sales Price\u2019).<\/p>\n\n\n\n

As is known, the basis for the adoption of Law No. 4015 was the draft law submitted by MPs from the Verkhovna Rada Committee on Finance, Taxation and Customs Policy (the \u2018Committee\u2019) under reg. No. 11416-d dated 30 August 2024, which was adopted as a basis by the Resolution of the Verkhovna Rada of Ukraine No. 3972-IX dated 17 September 2024.<\/p>\n\n\n\n

In the section \u2018General description and main provisions of the draft law\u2019 in both Explanatory Notes (02 September 2024 and the version revised by the Committee on 16 September 2024) to the draft law under reg. No. 11416-d dated 30 August 2024, there is no mention of the Sale Price of a mineral at all.<\/strong><\/p>\n\n\n\n

Thus, this provision, which appeared unclear how and on what basis, has absolutely no explanation.<\/p>\n\n\n\n

The price indicator itself (not less than USD 6.50 per 1 tonne for granite as a raw material for rubble stone and not less than USD 5.00 per 1 tonne for sand as a refractory raw material) also has no economic justification – why exactly this much, and not more or less?<\/p>\n\n\n\n

The introduction by the Parliament of Ukraine of a specific price indicator for a unit of commercial production of a mining enterprise – extracted minerals (mineral raw materials) for granite as a raw material for rubble stone (not less than USD 6.50 per tonne) and for sand as a refractory raw material (not less than USD 5, 00 per tonne) is an attempt by this legislative body to establish state regulated prices, which is a violation of the Law of Ukraine \u2018On Prices and Pricing\u2019, which regulates relations arising in the process of formation, establishment and application of prices, and which does not provide <\/strong>for any powers of the Verkhovna Rada of Ukraine in the field of pricing.<\/p>\n\n\n\n

Article 99 of the Constitution of Ukraine clearly states that \u2018the monetary unit of Ukraine shall be the hryvnia\u2019<\/em>. What does the US dollar have to do with it, especially when selling products on the domestic market?<\/p>\n\n\n\n

By the way, Law No. 4015 proposes to restate subparagraph 141.13.2 of paragraph 141.13 of Article 141 of the Tax Code of Ukraine in a wording that refers to another currency, the euro, which once again shows that Ukraine disregards its own currency.<\/p>\n\n\n\n

The Main Legal Department of the Ukrainian Parliament’s Secretariat in its Remarks to the draft law under reg. The Main Legal Department of the Ukrainian Parliament in its Comments to the Draft Law No. 11416-d of 30 August 2024 noted that, according to the results of the examination, its \u2018certain provisions do not comply with the Constitution, are not consistent with the laws of Ukraine and do not take into account the legal position of the Constitutional Court of Ukraine\u2019.<\/em><\/p>\n\n\n\n

On this basis alone, the Chairman of the plenary session of the Verkhovna Rada of Ukraine on 10 October 2024 should have withdrawn the draft law from consideration. Instead, he not only failed to do so, but also voted for its adoption.<\/p>\n\n\n\n

In addition, 259 MPs voted for the adoption of this draft law, contrary to the remarks of the Main Legal Department of the Verkhovna Rada of Ukraine, who, pursuant to Article 79 of the Constitution of Ukraine, took an oath to uphold the Constitution of Ukraine and the laws of Ukraine.<\/p>\n\n\n\n

The draft law under reg. No. 11416-d dated 30 August 2024 was distributed to MPs only two days before its consideration, which is a violation of part one of Article 117 of the Rules of Procedure of the Verkhovna Rada of Ukraine, approved by the Law of Ukraine \u2018On the Rules of Procedure of the Parliament of Ukraine\u2019, which provides that a draft law prepared for the second reading, the opinion of the Main Committee and other supporting documents to it shall be provided to MPs no later than ten days before the day of consideration of this draft law at the plenary session of the Verkhovna Rada of Ukraine.<\/p>\n\n\n\n

Law No. 4015 is to enter into force on the day following the day of its publication, and certain exceptions to it – on 1 January 2025.<\/p>\n\n\n\n

This is contrary to the basic principles of Ukrainian tax legislation, namely the principle of stability<\/strong>, as pursuant to subparagraph 4.1.9 of paragraph 4.1 of Article 4 of the Tax Code of Ukraine, changes to any elements of taxes and fees may not be made later than six months before the beginning of the new budget period in which the new rules and rates will be in force. Taxes and duties, their rates, and tax privileges cannot be changed during the budget year.<\/p>\n\n\n\n

Therefore, the said draft law should be enacted only from 1 January 2026.<\/p>\n\n\n\n

General conclusion <\/strong>– the Law of Ukraine No. 4015-IX dated 10 October 2024 \u2018On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Ensuring the Balance of Budget Revenues during the Period of Martial Law\u2019 was adopted by the Verkhovna Rada of Ukraine<\/strong> with violation <\/strong>of certain provisions of the Constitution and laws of Ukraine, which does not comply with the basic principles of the rule of law and is an encroachment on its social system, as well as negatively affects the harmonisation of Ukrainian legislation with the law of the European Union, an official candidate for accession to the EU.<\/p>\n\n\n\n

Photo source: https:\/\/pixabay.com\/<\/em><\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Association appealed to the President of Ukraine V.O. Zelenskyii, as the guarantor of the Constitution, with a request to apply the veto to the Law of Ukraine dated 10 October 2024 No. 4015-IX \u2018On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Ensuring the Balance of Budget Revenues during […]<\/p>\n","protected":false},"author":1,"featured_media":2454,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/posts\/2478"}],"collection":[{"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/comments?post=2478"}],"version-history":[{"count":1,"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/posts\/2478\/revisions"}],"predecessor-version":[{"id":2481,"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/posts\/2478\/revisions\/2481"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/media\/2454"}],"wp:attachment":[{"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/media?parent=2478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/categories?post=2478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/avnbmu.com.ua\/en\/wp-json\/wp\/v2\/tags?post=2478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}