VAT Payments to State Budget Decline by 118 million GEL in May
The Finance Ministry Treasury has published the May 2020 budget fulfillment report. Under the document, VAT payments to the state budget in May declined by 118.2 million GEL (-37%) and amounted to 196.3 million GEL.
The 37% contraction signifies Georgia’s economic activity has extremely shrunk.
The Geostat report is based on the turnover of VAT payer companies. In April, economic slowdown in the country made up 16.6%.
Besides VAT payments, the inflow of income and profits taxes also decreased in May 2020.
Incomes tax payments to the state budget in May amounted to 234.1 million GEL, down 14.6% year on year. Consequently, the declining incomes tax signifies the amount of salaries have decreased.
The income tax rate accounts for 20% and primarily, contracted employees pay it.
The profits tax in May amounted to 43.7 million GEL, down 28.2 million GEL (-39%).