KIEV, Nov. 23 – A team of government officials on Tuesday began talks with protesters over amending the newly approved controversial tax legislation that triggered massive street rallies over the past several days.
The talks are an early indication the government has yielded to pressure from thousands of entrepreneurs that believe the legislation increases tax pressure on small businesses.
“There is a willingness to cooperate and there is an understanding of what we demand,” Serhiy Korotych, one of the leaders of the protest action, told Channel 5 television.
First Deputy Prime Minister Andriy Kliuyev leads the government’s team at the talks, and plans to hold another meeting with the protesters early Wednesday.
“We are in agreement that we will support their reasonable ideas,” Kliuyev told reporters.
The protest action that involves thousands of small business owners began as a spontaneous action against the Tax Code that had been approved on Friday.
The legislation reduces taxes on corporations, but generally increases pressure on small businesses, including providing more powers to local tax inspectors that business owners believe would fuel corruption.
Between 15,000 and 20,000 protesters gathered for the rally in downtown Kiev on Monday and hundreds agreed to stay in the area through the night.
The demonstrators demanded that President Viktor Yanukovych veto the legislation, and vowed to continue the protest until the veto is applied.
There were fears that the government will use force to disperse the protesters on Tuesday morning, but the talks indicate the a more cooperative approach has been selected.
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