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Business to be Gradually Exempt from Income Tax

Business to be Gradually Exempt from Income Tax

The abolition of income tax for business will happen gradually. In this regard, the government will consider the Estonian model.

Answering the question  asked by “CBW”,  Finance Minister  Nodar Khaduri  said they  are working on the abolition of income tax, however, it will not be abolished  directly as  income tax comprises GEL 900 million in  revenues  to  the budget. “Estonian model is being discussed. If we cancel income  tax now, this means that the budget should be reduced by about GEL 900 million. We are working on this issue and an accurate model will be probably presented by  September, the road map of how to move to the Estonian model “, – he states.

The Ministry of Finance is working on a new initiative, according to which,  the business will be exempts from income tax and only dividend will be taxed. Businessmen hail the initiative and consider that freed funds will be used for the business development. In addition, the Taxpayers’ Union hopes that the abolition of income tax time will  be adequate.