What will Georgia face under PM Bakhtadze?
Candidate for Georgia's Prime Minister Mamuka Bakhtadze has presented the governmental program ‘Freedom, fast development, prosperity.’
In his speech Bakhtadze talked about how his new government sees the development of Georgia in various directions, including in the economic field. Bakhtadze said that inclusive economic growth is the priority of the government's economic policy.
"This means the involvement of society in the development of economy. Yes, we have a good economic growth rate, but it lacks the component of inclusivity. In the development of the country’s economy the private sector takes the leading role and its role should be increased even more. For this reason it is important to further improve the business environment," Agenda.ge cited Bakhtadze as saying.
He proposed to annul tax arrears of the period from before January 1, 2013, implement reform on VAT returns in 2018, which is expected to result in additional surplus capital for the country.
Bakhtadze also offered to create a single, digital format system, make the tax and customs codes simpler for entrepreneurs; create new tax regimes to support multinational companies establish regional offices in Georgia and get the most preferential tax system.
According to the new system, foreign investors will be able to register their companies online in Georgia, open bank accounts in Georgia’s banking system and also manage their companies online; commercial courts will be established in the common judicial system, which will be specialised in reviewing commercial and tax cases.
From July 1, 2018 a preferential tax regime will come into force for small businesses in Georgia which will reduce turnover tax for small entrepreneurs by five times. In addition, while in the past small businesses were defined as businesses with a turnover of up to 100,000 GEL, from now on those with a turnover of up to 500,000 GEL will also qualify as small businesses.
Furthermore, as Bakhtadze announced, capital market reform, pension reform, the development of the public-private partnership system and a responsible lending system are also planned.