Entrepreneurship development is our priority direction, especially small business sector. When delivering my speech at the Parliament before voting to the new cabinet of ministers, I noted that we would launch the second stage of small business support efforts after successful implementation of agriculture projects as part of Enterprise Georgia state program.
And now we are introducing a new initiative and I would like to thank Mamuka Bakhtadze, who has proposed a very interesting legislative package at today’s government meeting, Georgian Prime Minister Giorgi Kvirikashvili noted at today’s government meeting.
The new tax bill calls for introducing preferential taxation regime for small entrepreneurs. Namely, turnover tax will shrink 5 times and 5% tax will be reduced to 1%. Moreover, today companies with turnover of about 100 000 GEL are classified as small businesses, while the new bill lifts this top margin to 500 000 GEL. We believe this is a very important decision for small entrepreneurs. Tax burden will considerably decline and naturally, new entrepreneurs will be incentivized.
I believe that our entrepreneurs will make a use of these preferences and launch new enterprises. This decision will oxygenate small enterprises for developing their business companies, the Prime Minister said.