The Ministry of Finance is working on new legislative initiatives aimed at further liberalization of a legal framework, penalties and sanctions necessary for the fair and efficient administration.
The Ministry has prepared a package of amendments to the Tax Code, which provides an important mechanism for business support and stimulation.
According to Finance Minister Nodar Khaduri, foreigners are bringing raw materials in Georgia, the Georgian enterprises process them and then export a final product. Export is not taxed in our country.The Association Agreement and the Deep and Comprehensive Free Trade Agreement, in his opinion, gives the opportunity to encourage these kinds of ventures.
The Ministry states that the business sector was involved in the process of developing the changes and the many initiatives were prepared based on their recommendations. The bill provides for significant changes, including VAT exemption for local processing industry.
Changes may contribute to the development of local enterprises that provide services to foreign companies. A competitive environment for local businesses will be created. The heads of these enterprises will be able to re-invest all the savings in business development and create new jobs.