Evolutionary tax code
By Messenger Staff
Friday, July 9Minister of Finance Kakha Baindurashvili calls the new tax code evolutionary. However he wants the code to be more flexible, so that Georgia adopts the European method of administering taxes, in which taxation is ultimately levied as a means of developing and promoting business.
Taxpayers fall mainly into two categories: large and medium-sized businesses and small businesses. Tax pressure has been slightly lifted in all directions. Certain items have been introduced in the tax code to give relief to taxpayers, for instance big importers will not be forced to pay VAT on their imported products at the border but will be given two months to grace, meaning they will be able to use the money set aside for VAT payments for investments and pay VAT after selling their products at least partially.
Small business taxes have been halved, whereas micro business is completely exempt from tax. However excise fees have been doubled, on vodka in particular.
The major motivation or these changes, as Baindurashvili explains, is to encourage business startup and development. He expressed his confidence that as soon as the new tax code is introduced small business will have extra incentives to develop.