“Abolition of Liberty Act would be a major evil before our population”, economist Zviad Khorguashvili noted and unveiled key provisions of Liberty Act:
“What is Liberty ACT and what its abolition signifies:
Liberty Act is a law that may be revised or abolished by a constitutional majority. It says:
- Employees pay 20% income tax, i.e. 20 GEL from each 100 GEL and 200 GEL from 1000 GEL and so on. Liberty Act protects this tax from growth by referendum. This concerns business too (registered as physical bodies).
- Profits-oriented legal body (or business) pays profits tax. Analogically, Government will be able to raise profits tax without referendum if the act is abolished.
- VAT. – all persons pay it. This tax is reflected in price. Consumers pay 18% from each GEL. Liberty ACT protects this tax from growth without referendum.
- Government controls a certain part of each GEL created in economy. How much would you trust to Government? I would not trust any amount to this Government. Liberty Act says that Government must not control more ran 30 Tetri in each 1 GEL.
- According to Liberty Act, deficit must not be more than 3%. This signifies the Act obliges Government not to spend more than revenues to avoid taking debts.
- Liberty Act sets limits on Government for taking debts. New loans are to be paid by us, our children and grandchildren. Today, averaged debt per person is 3 900 GEL. State debts are as unpleasant as personal debts.
- Because of Liberty Act, Government cannot restrict us to exchange USD or EUR in GEL.
And this list is longer”, Khorguashvili said.