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Georgia’s Minister of Finance Listed 14 Achievements of the Government

Georgia’s Minister of Finance Listed 14 Achievements of the Government

According to the Minister of Finance of Georgia Nodar Khaduri, despite the difficult economic situation in the country, there are positive expectations concerning the exit from the crisis.

“In January, the economy grew at 0, 5%, and it is a negative result, but in the months that followed indicators were much more positive. So, in February an increase was 4, 9%. March and April statistics is not prepared yet, but I can say that tax collection exceeded the numbers for the same period of last year by 13%. As of 22 April 2014, a total of GEL 2, 27 billion were mobilized to the budget, while in April 2015 – 2.286 billion, ie 260 million more. Accordingly, the forecast for the collection of taxes for 2015 exceeds last year’s figure by 9%, “- says the Minister. According to him, in April 2015 the growth of tax collection amounted to 18%, and most importantly, “it was not done by arm-twisting, as the previous government did.”

With regard to the adjustment of the economic growth forecast , according to Nodar Khaduri, on this occasion a visit of the IMF delegation was planned in late April of, but it was decided to postpone the visit until May, since the current data are insufficient to determine the figures for 2015. He says the main thing that will help overcome the crisis is a policy for supporting business that was launched immediately after “Georgian Dream” came to power. Finance Minister named 14 major positive steps taken by the current government in 2. 5 years. Firts, abolition of the law under which, the state had the right to seize the disputed property and sell it after the beginning of the tax litigation.

“It was a very bad law because the state could win a court in the first or second instance, but lost in the third, and at that time the property of the winning businessman could be sold. Ultimately, this created a big problem, “- the Minister notes. The second achievement of power, according to the Minister of Finance, the reduction of the period of limitation of tax debts from 6 to 5 years with a consequent reduction to 3 years. “There are very few countries in a world with such a low statute of limitations” – Nodar Khaduri says. The third achievement are measures taken to stimulate agriculture. “The agricultural sector is very important for us, so we released it from paying VAT. Half of Georgia’s population lives in rural areas, but the share of the agricultural sector in GDP is less than 10%, which means that the industry needs help “- says Nodar Khaduri.

The fourth achievement is the exemption from income tax funds allocated for reinvestment in agriculture and medicine. Fifth – the exemption from payment of income tax individuals earning up to GEL 6 000 per year. Sixth achievement – changes to the tax laws that are aimed at encouraging small and medium-sized businesses. Seventh – is the work of the government to address the problem of weak capitalization. Eighth achievement – exemption of import of paper for printing books from VAT. Ninth achievement Nodar Khaduri considers t tax exemption for amounts directed by charity funds for treatment. Tenth achievement is the liberation of 20 000 taxpayers from paying the amount of about GEL 1 billion.

11th is the government’s intention to exempt from taxes and penalties construction companies affected by the crisis of 2008-2009 and forced to stop their projects. According to the Minister of Finance, this decision will allow construction companies to save GEL 200 million. 12th achievement is an extension of deadline for payment of VAT for grain importers so that they will be able to pay taxes after selling. 13th achievement – an initiative of the government to cut tax on rental apartments from 20% to 5% as well as on the sale of real estate and cars. Finally, the 14th in the list of achievements by Minister of Finance is the signing of an Association Agreement with the EU.