Development sector has staged sharp criticism because of introduction of advancement payment of VAT tax.
Only these changes cannot improve the current situation in the development sector and new regulations will bring negative effect. Prime cost of real estate spaces will grow because of this regulation. GDG development company director noted.
“This change may bring opposite effect. As a result, number of unfinished development projects will increase. The bill of amendments to the Tax Code was motivated by the fact development companies did not pay taxes to state budget, but this change cannot tackle the problem and other regulations are required in the development sector.
Previously, we used to pay VAT tax, but now we have to pay the tax in advance and we have to put this money into state budget in addition. This regulations will increase price in real estate sector, because we have to accumulate these funds in advance”, GDG director general Bezhan Tsakadze told Business Contract.