On 21 November, ESM Tbilisi hosted a meeting on the initiative of the Prime Minister of Georgia. The Minister of Finance presented a package of draft changes before professors and students intended to streamline the fiscal system, cut a variety of taxes with the ultimate goal to encourage local entrepreneurship. In turn, the changes would add to the attractiveness of the investment environment. The goal of the new Tax Code is to prevent double interpretation of any of its articles and assure its uniform application by tax authorities and business circles as well.
In his speech, the Prime Minister pointed out: "the Georgian economy is now under double hit on one side by the Russian aggression and on the other - by the global economic crisis. Despite these challenges, we must create new jobs, attract investments and develop local production. Georgia must become ever more attractive for its liberal economy, for its low taxes. For this, we need first lower taxes and then a more attractive environment that naturally encourages the creation of new jobs. Therefore, just a few days ago, we made a decision to considerably cut income tax from 25% down to 20% and the income tax on dividend - from 10% down to 5%. This to a certain extent means additional 250 million Lari to the Georgian economy. Our goal is to turn the Georgian economy into the most open, most incorrupt and most free economy of the region, with a high degree of liberalism, low taxes and a flexible, simple Tax Code. We are not going to step aside of the course of our reforms and liberalism, as this is a way to employment, a means to create new jobs. This is all that our society needs most of all."
At the end of the meeting, the Prime Minister and the Minister of Finance heard the opinion of the public and gave exhaustive answers to the questions of the professors and students.
Press Center of the Chancellery of the Government of Georgia