Gov’t to Make Amendments to Tax, Criminal Codes

The Government of Georgia discussed a proposed legislative package for amending the tax and criminal codes at this week’s cabinet session.

The amendments propose decriminalization of economic offenses, one of the key promises under the economic component of the Government's Four-Point Plan. The legislative package also includes increased fines for committing economic crime.

"This package increases the amount for criminal liability from 50,000 to 100,000 GEL. In addition, criminal liability is abolished for tax offenses related to waybills, excise stamps, and others. The package also includes significant incentives for individual sectors, such as aviation. We will exempt from VAT excise duty aviation fuel intended for domestic flights and various air transportation services," Prime Minister of Georgia, Giorgi Kvirikashvili, said, adding that the amendments seek to boost tourism, as domestic aviation is a highly subsidized industry, and special incentives are necessary to simplify travel as much as possible.

The PM noted that special incentives will be introduced for owners of micro power stations. He also said that the government will encourage solar energy development. “Today, many countries actively use solar power roof panels, and we want to encourage this practice here. The Ministries of Environment Protection and Energy are coordinating their work in this direction. Besides tax-related incentives, we want to have particular financing mechanisms in place to use innovative micro power stations of this type,” Kvirikashvili said.

The amendments also involve the construction industry. According to the PM, the tax benefits for construction companies will be extended by two years.

“By the end of 2017, constructions worth an investment of $65 million are expected to be completed. These benefits will promote the renewal of unfinished construction and ensure the satisfaction of the affected population," the Prime Minister said.

The changes to the Tax and Criminal Codes of Georgia were prepared by the government's economic team.

Thea Morrison

27 April 2017 18:46