KIEV, Nov. 28 – President Viktor Yanukovych, after a meeting with protesting small business owners on Saturday, said there was a “high probability” that he will veto the controversial tax legislation that had triggered the protest.

The comment comes after talks between the protesters and the government collapsed on Wednesday, with the protest increasingly switching from economic to political issues.

“The probability of applying the veto is high,” Yanukovych told the protesters while visiting them at the rally in downtown Kiev square. “But we will be able to talk about it only after we, together, review the issues of the Tax Code.”

Yanukovych and Prime Minister Mykola Azarov joined the rally for talks to resolve a deadlock that had stalled negotiations between the protesters and the government.

The protest began on Nov. 22 as a spontaneous reaction to the Tax Code, which was approved by Parliament 10 days ago. The legislation is reducing taxes on big corporations, but increases pressure on small businesses.

About 1 million small business jobs may be lost in Ukraine after the new tax legislation is enacted, mostly because new taxes and bribes are often making operation unprofitable, according to opposition lawmakers.

Yanukovych told the government to resume the talks with the protesters and to try to come to a compromise by Thursday, before the president decides on whether to veto it.

“I am ready to listen to you on Thursday what differences you still have and what should be done,” Yanukovych said. “If the veto needs to be applied, it will be applied.”

Azarov said the government and the protesters should meet on Monday to come up with amendments to the tax code, and that there will be two ways.

“First, the president vetoes [the legislation], and submits our amendments to Parliament, which gets together and approves them,” Azarov told ICTV television on Sunday.

“Second, the president reviews our suggested amendments, and signs the Tax Code with understanding that it will be enacted after the amendments are approved [by Parliament].”

The deadline for both options is Dec. 20, when Parliament has to approve the 2011 budget, which is supposed to incorporate the new taxes.

“In any case, we have to approve the budget by Dec. 20,” Azarov said.

Meanwhile, reaching a compromise may be already too late for the government as protesters have been increasingly switching from economic to political demands, such as the dismissal of Parliament.

Oleksandr Danylyuk, the leader of the protesting small business owners, at a press conference called on the people to go for a one-day strike to increase the pressure on the government.

“The rally, which began as a protest against the economic pressure had become political,” Danylyuk said. “The authorities provoked this standoff. Today [protesters] talk less and less about the Tax Code, and more and more about general injustice that is sweeping the country.”

“On Monday [Nov. 29] an all-Ukrainian indefinite protest action will begin aimed at putting the country at last back on its feet. It doesn’t matter anymore whether the president signs or vetoes the Code. Now, the time is over.” (tl/ez)