2018-04-04
The Government of Georgia proposes new large-scale tax initiatives-as Georgian Prime Minister Giorgi Kvirikashvili stated during today's Government meeting, the three new reforms initiated by the Finance Minister will be a breath of fresh air, especially for small entrepreneurs.
"Recently, the Ministry of Finance proposed a number of very important initiatives involving quintuple tax cuts for small entrepreneurs. It was really an unprecedented step toward tax liberalization. Today's three new initiatives are equally far-reaching and innovative. The first reform, which is unique not only in Georgia, frees entrepreneurs from excessive bureaucratic procedures and, instead of five tax documents presently required from entrepreneurs, establishes only one, unified tax paper to be submitted. This way, our entrepreneurs are freed from an enormous bureaucratic burden, so they will no longer waste much resources on document processing," the Prime Minister said.
According to the Head of Government, the Government prioritizes economic growth in Georgia, which maximally engages every social strata, especially low-income categories, and the second initiative is directed to this end.
"I believe that we all have a feeling that hotels or new retail outlets in the mountainous regions, for example, do not feature much of local production, or products made in the same district or village, while products are often purchased and delivered from Tbilisi or other regional centers. This is why, in order to encourage purchase in this direction, especially of local food products, to offer as much local production as possible, in both small and family-run and hotels in the regions and villages, we are simplifying procurement, in terms of both taxation and procedures, from local entrepreneurs, rural residents and small farmers. I believe it to be a very significant initiative. Because of this problem, businesses often, very often, refuse to procure quality products. This amendments solves this problem, with businesses being able to procure goods without limitation, and this will have an impact on the tax burden that the company will face, which will in turn surely encourage businesses to buy local, locally made products. It is also the best European practice. As you know, in Europe, especially mountainous areas, one finds locally produced goods, and this is very attractive. When vacationing in the mountains, people want to try local products. Unfortunately, the tax environment we used to have prevented it from happening," the Prime Minister stated and thanked the Finance Minister for proposing such an important initiative.
According to Giorgi Kvirikashvili, the third initiative is designed to turn Georgia into a regional financial hub.
"Accordingly, this initiative involves online business registration in Georgia for non-residents. This initiative will enable non-resident individuals to register their companies online in Georgia and open bank accounts in our country. They also will be able to manage their companies in our country online, without being physically present here. Of course, it is an extremely complex and important issue in terms of coordination with international financial institutions and the Monetary Fund. I am convinced that this initiative will be a very important new source of income for our country, and it will enable us to simply our country's positioning as an international financial hub both in the region and beyond," Giorgi Kvirikashvili emphasized.
According to the Prime Minister, the initiation of this proposal was preceded by in-depth discussions within both the Government's economic bloc and the parliamentary majority, and this coordination and cooperation will continue.
Prime minister's Press Office