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Large-scale Benefits Planned in the Agricultural Sector

The government is preparing a series of tax incentives for agriculture that will reduce the tax burden and thereby stimulate agricultural production.

Both the government and the Parliament of Georgiaare working on the project.

It should be noted  that agricultural production is already exempted from VAT, in addition, co-operatives, the creation of which started in 2014, are exempt from income and profit taxes.

“At this stage we are talking about a number of measures to stimulate production, worked out by the Ministry of Finance, although they are not specified,” – “Commersant”  was told at the Agricultural Committee of the Parliament of Georgia.

The Committee is also working on benefits, the essence of which is likely to be known in September.Several versions, which include  certain benefits for  investors – such as tax exemption for the first 4 years for the farmers who grow the long-growing plants.

“For example, walnut grows for 4 years, and the investor should have an opportunity to wait until itgrows up,” – say in the Committee.

The developers of the program do not specify which sectors of agriculture will primarily use privileges,since it would create an awkward situation, when the representatives of the industry will base their work on expected changes but the legislation will not be such as they expected.

Precisely for this reason, the Agricultural Committee prefers to refrain from any specifics until the document is ready.