Home / Economy / Kvirikashvili: Economic Reform will Continue Encouraging And Empowering the Private Sector
Kvirikashvili: Economic Reform will Continue Encouraging And Empowering the Private Sector

Kvirikashvili: Economic Reform will Continue Encouraging And Empowering the Private Sector

Head of the government regards, that economic reform will continue encouraging and empowering the private sector.

“Important tax incentives have been introduced, such as tax exemption for reinvested profits. This will allow the business sector to keep almost 600,000 GEL and use this money for expansion and creation of new jobs. We have already made relevant amendments to the tax code. The tax environment will become even more business-friendly maximally to encourage investments.

Kvirikashvili declares, that they will continue and expand the programs that support entrepreneurs, startups, and innovative business projects through the Produce in Georgia program, agricultural loans, agricultural assistance programs, startup financing, and others.

“We already have concrete results. The state issued 5,289,000 GEL to subsidize 10 companies under the Produce in Georgia program, who were selected using a statistical probability selection method. As a result of two years of their work, they have paid 5,090,000 GEL in taxes, and 313 new jobs were created, which means that after the subsidy is terminated, these taxes will be paid fully toward the country’s budget, and those employed will keep their jobs. This is a very positive impact affected by this program.

In all, 235 projects have been implemented under the Produce in Georgia program, bringing in 522,000,000 GEL in investments and creating 11,000 new workplaces under this program alone.

In 2016, we also launched the Startup Georgia project that has already financed over 60 startup businesses. Yesterday, we awarded an aggregate of 900,000 GEL to nine such enterprises. This is a subsector of our economy with the greatest potential for growth, and efforts in this direction continue. It is about transformation, but the greatest impact of these programs is that they inspire young people to consider becoming employers.

154 new agricultural enterprises were established and 700 expanded, of which 21 new enterprises opened in 2016. All these state projects are designed to encourage entrepreneurial spirit in our citizens. It is important in terms of worldview transformation in younger generations for them to become entrepreneurs and create new jobs in the country”, – the PM declared at the session.

He noted, that 2016 has proved a success in terms of implementing projects in the energy sector as well. The Light in Every Village project has been completed, providing electric light for 30 villages previously without power supply. The first wind farm in Georgia was also built, and four new hydropower plants were launched.