By Messenger Staff
Thursday, December 18Minister of Finance of Georgia Nika Gilauri has stated that from 2009 Georgia will have one of the simplest taxation systems found in any country. Georgia will achieve this by introducing very serious amendments to the taxation and customs codes.
From 2009 income tax will decrease from 25% to 20%. This will give Georgia the fourth lowest personal income tax rate in the world, after those of Hong Kong, Singapore and Gibraltar. Certain economic experts are skeptical about the Government’s claims however because the 5% reduction in income tax, which has been widely advertised, will be offset by increases in other taxes which will make the system more complicated. The property tax is one of many which will be hiked to make up the income tax shortfall.
Economic analyst Irakli Shavishvili highlights some complicated paragraphs in the tax code which are controversial and give the possibility of dual interpretation. It will however be 2009 in a fortnight, leaving us all to hope for the best together.