You're reading: Cabinet urges parliament to reconvene and pass emergency measures

The Cabinet of Ministers issued a statement on July 25 calling parliament to hold an extraordinary session to adopt measures that would raise an additional $1.2 billion in revenue, of which $770 million would be allocated for the war effort against Russia. The statement was released after parliament adjourned its July 25 plenary session and announced a break until Aug. 12. 

“Today, the Verkhovna Rada has once again
shown irresponsibility,” reads
the Cabinet statement
. “The national deputies of Ukraine couldn’t even
include in the daily agenda the bills proposed by the Cabinet of Ministers of
Ukraine that are necessary (for adoption) to save the country. The government
of Ukraine emphasizes that without the passing of these bills there won’t be
answers to how salaries will be paid, pension, social benefits, how to ensure the
army gets everything it needs, how to finance the public’s needs who became
homeless because of the acts of terrorists and separatists, how to gurantee the
nation’s energy security and survive the winter.”

The
government statement added that President Petro Poroshenko would take part in
the extraordinary meeting. According to legislation, the head of parliament can
call an emergency session or is obligated to if 150 law makers sign and deliver
a petition to him.

The
proposed measures would boost revenues worth 1 percent of gross domestic
product and aimed at compensating for a shortfall in tax revenues and
reallocating spending for military purposes. They contain tax code amendments
that would more than triple royalty payments on Ukraine’s gas producers, starting
immediately, and would eliminate generous subsidies on agricultural producers,
starting in 2015, according to a Condorde Capital note to investors.

The
proposals also introduce a 15 percent tax on passive income, including interest
on bank deposits, as well as reduce support to coal mines as part of public
administration spending reductions.

Finance Minister Oleksandr Shlapak has stated
that the Russia-instigated war in eastern Ukraine is costing the state Hr 1.5
billion per month, or some $125 million.

Before resigning as prime minister on July
24, Arseniy Yatseniuk chided parliament for not passing the proposed measures.
Deputy Prime Minister Volodymyr Groisman was named acting prime minister is in
place.

Kyiv Post
editor Mark Rachkevych can be reached at [email protected].