KIEV, Dec. 2 - Parliament on Thursday approved new tax legislation with amendments submitted by President Viktor Yanukovych that provide some concessions to small business owners.

Protesters, however, rejected the concessions and pledged to continue their protest action until the government is dismissed and Parliament is dissolved.

The developments indicate that a clash between the protesters and the authorities becomes more likely with a chance of triggering political instability.

“The protesting entrepreneurs are completely not happy with the amendments that had been made by Parliament in the Tax Code,” Oleksandr Danyliuk, one of the leaders at of the protest, told TVi. “We receive hundreds of calls from across Ukraine demanding us to continue the protest. They promise to send more people to join the protest rally on Dec. 6.”

This comes amid increasing sings that the largest opposition party, Batkivshchyna, has been actively involved in the protest, turning it into a political, not economic, issue.

“We really supported this rally,” Oleksandr Turchynov, the No. 2 in Batkivshchyna, said, adding that the party has provided tents and even manpower to the protesters. “We helped with the tents, and our lawmakers have been staying on duty [in the tent camp] to prevent the authorities from dispersing the rally.”

Turchynov said the opposition group will continue its support.

“We will keep doing this as long as it takes,” he said.

The protesters said that up to 15,000 people had showed for the rally on Maydan Nezalezhnosti in downtown Kiev, while police estimated the number of protesters at about 2,000.

The protesting entrepreneurs demand the new tax legislation be cancelled, while other demands include dismissal of the government and Parliament, and holding the next general election in March 2011.

The protest began on Nov. 22 as a spontaneous reaction to the Tax Code, which was approved by Parliament on Nov. 18. The protesters complain that the tax 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.

Yielding to pressure from the protesters, Yanukovych vetoed the Tax Code on Tuesday, and submitted the new draft with amendments to Parliament on Thursday.

Parliament approved the new Tax Code by 268 votes in the 450-seat Parliament without debate and by a single vote on Thursday, underscoring that Yanukovych easily commands majority of lawmakers.

His amendments include some concessions for small business owners, such as increasing the level of income at which they can still use a simplified tax system.

Meanwhile, the amendments to the tax legislation come after the previous bill had been already seen by and agreed with the International Monetary Fund last month.

The changes may now reduce Ukraine’s chances of obtaining $1.5 billion loan from the Washington-based lender later this month.

Receiving the loan from the IMF is crucial for the government for covering a growing budget deficit and for stability of the local currency, the hryvnia, analysts said. (tl/ez)