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Small Business Asks the Government to Delay the Payment of Income Tax

Small business is asking the government to delay the payment of income tax, as in the current situation small companies are really facing bankruptcy – due to the depreciation of the lari, the purchasing power of the population has reduced that hits the business.

According to Levan Gagua, Director  of “Lilo Mall”, this initiative is timely and fully in line with current realities.

“The tenants’ revenues trading in the ” Lilo Mall” market have declined in comparison with the same period of 2013. Accordingly, the delay in the payment of income tax can bring them a tangible relief. These savings can be directed to the rehabilitation of their business. All small businesses have loans that they have to repay. As for the possibility of reducing the cost of rent, this issue is not considered as we have a differentiated approach and all pay in different ways. In particular, there are 32 types of tariffs in “Lilo Mall” and the cost ranges from GEL 10 to 50 per square meter. At the moment 5 000 out of 5 300 objects in the shopping center are leased ,”- he says.

According to Nina Petrova-Dzneladze, a founder of the greenhouse agriculture “Nectar”, the implementation of this initiative will be great help for businesses.

“The sooner this law is adopted, the better, as time goes on, and the losses of small business are  growing. Uncertainty is growing every day, we do not know when the national currency  will stabilize, and this is a big problem, “- she notes.

According to her, many entrepreneurs have  taken out loans in dollars, respectively, they will have to pay  more and more laris.

A founder of  the company “Pepe” George Tatishvili expresses the hope that the benefits, if adopted, will  apply  to beekeepers because individuals  but not legal entities are exempt from paying taxes.

“I am a small businessman, and am currently in a difficult situation. If payment of taxes is delayed, I will be able to spend the released funds on  business development,”- he says.

Position of the  authorities  on this issue is still not fully defined.

According to the Deputy Chairman of the Parliamentary Committee on Sector  Economy Temur Maisuradze, such initiatives often seem simple and attractive at first glance, but most importantly if the Finance Ministry can afford it.

“At this stage the parliamentary majority have not yet consulted with the Government, this matter has not been discussed on the committee hearings. In any case, the issue needs serious consideration to make it clear who can take advantage of this law.We cannot allow a small business that regularly pays taxes, be at a disadvantage. The violation of the law can’t be encouraged, “- the MP notes.