Posted: 4 years ago

None of the previous Prime Ministers have Managed to Abolish the Profit and property taxes

The Caucasus Business Week (CBW) has inquired how the business sector appraises the government program submitted by the new Prime Minister. 

“Urgent Necessity” – the businessman Lasha Papashvili appraises the economic part of Giorgi Gakharia’s program with these words. 

Ensuring taxation discipline is a similar field. Today, honest taxpayers remain in a discriminating situation, because, unlike dishonest taxpayers, this category pays all taxes and respects timeframes. All smart Prime Ministers would make place the same emphasis, Papashvili said. 

“Politics and economy are inseparable in the 21st century. Therefore, the more the Prime Minister intensifies communication with business, the more he and the country will win”, Papashvili pointed out. 

Domestic businessmen have discussed the same reforms with the Government many times, but none of the previous Prime Ministers have managed to change anything or abolish the profit and property taxes. Hotels in the regions work only 2-3 months a year, only on season, but they pay  profits and property taxes for 12 months anyway”, Papashvili said. 

“We discussed this issue with the previous Prime Minister. He divulged his own position too, but he resigned to not having resolved this problem to the benefit of the business sector”, Papashvili said. 

The GEL exchange rate’s depreciation has shaken hotel and other industries, and this should be cultivated , Papashvili said, and stressed that it is necessary to adopt the Insolvency Law. 

“We need a law on insolvency in everyday routine. Therefore, the faster it is adopted, the better”, Papashvili noted. 

“As for dialogue with business, I would not say communication with business was insufficient under the previous Prime Minister, but nothing efficient was carried out. Dialogue is one thing and enforcement mechanisms are another. Therefore, we should double the amount of  communication and triple enforcement efficiency,” Papashvili said. 

“Giorgi Gakharia was a businessman. We have jointly visited the then-Prime Ministers and Finance Ministers. I can openly say that enforcement is a serious challenge. Naturally, dialogue is a good thing, but business expect further decisions. The Business Ombudsman’s office has lost a little efficiency, because its recommendations are not accepted by the government and this institution adopts a nominal and formal character”. 

The government should accept the initiatives and recommendations of the Business Ombudsman’s Office, Papashvili noted.