Paata Lomidze, Director General of the insurance company GPI Holding, says if the Estonian model of taxation of profits, will apply to the insurance sector, this will boost the sector development and growth.
As reported, the Estonian model was launched on January 1, 2017, which means that the company/enterprise will be taxed only on profit distribution, and will not be subject to income tax on reinvested profits.
In his words, to develop the insurance sector, businesses should have free money to invest, which would not be taxed and be poured into long-term projects.
“The Estonian model should affect the insurance sector too since unlike developed countries, insurance in Georgia is rather poorly developed. It needs an additional impetus, such as an exemption from paying tax on reinvested profits. This will save a lot of money that will be spent on the long-term projects”- General Director of GPI Holding notes.