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Gov’t to make changes to Tax Code

By Tea Mariamidze
Wednesday, April 26
The Prime Minister of Georgia, Giorgi Kvirikashvili, stated at a government session that tax benefits for construction companies will be extended for two years.

“By the end of 2017, construction projects worth an investment of $65 million are expected to be completed. These benefits will promote the renewal of unfinished constructions and the satisfaction of the affected population, "the Prime Minister said.

Moreover, Kvirikashvili said that Georgia would get a $100 million grant from the World Bank in order to help Georgia implement serious reforms.

"World Bank Vice President Paul Romer became interested in the 4-point plan of our government and with the fiscal reforms we are implementing, and he decided to personally engage in the implementation process of these reforms,” the PM said.

The Prime Minister also said that the government is going to promote solar power generation in Georgia.

“At present in some countries, the panels of solar power plant are very common and we want to encourage these panels in Georgia too,” he said, adding that citizens who generate solar power will be free of tax in case they sell it.

Kvirikashvili also said that the fines for economic crimes will be increased.

“The amount of fines for economic crime will be increased from 50,000 GEL to 100,000 GEL while criminal liability will be canceled in some cases,” he said.

The PM stated that the decriminalization of economic crime was one of the most important promises in the government’s 4-point plan. According to Kvirikashvili, the amendments include an increase of the amount of fines for economic crime and the abolition of criminal liability for tax violations.

“The economic team worked on these changes. Of course, it was the Ministry of Finance, but business ombudsman Giorgi Gakharia also contributed to it,” he added.

The amendments will be made to the Tax Code of Georgia and the Criminal Code of Georgia. The Ministry of Finance presented the corresponding draft law at a government session on April 25.