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BAG: Businesses Will Find It Difficult to Maintain Jobs

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BM.GE
11.11.20 14:45
701
Business Association of Georgia demands extension of tax benefits for business for another 6 months. BAG requests the Government of Georgia and the newly elected Parliament of Georgia to amend the Tax Code as soon as possible. In particular:
 
I. The income tax exemption, which was related to salaries up to GEL 1,500, should be extended for an additional 6 months and, therefore, should cover the full one-year period from May 1, 2020, to May 1, 2021;
 
II. The tourism and hospitality industry should write exempt from accumulated income tax based on the change made in the Tax Code of Georgia on May 22 of this year.
 
"First of all, it must be said that from the beginning of the pandemic, the association was involved and welcomed the introduction of tax incentives for businesses. However, tax breaks were limited in time and were intended to mitigate the negative effects of the first wave of the pandemic. The package of measures developed during that period, naturally, did not consider the new difficulties faced by business operators in the autumn, i.e., during the second wave of the pandemic. Moreover, today business operators are experiencing even more problems than they faced in the pandemic's first months.
 
As already mentioned, the given time period has expired today. All of this is happening while pandemic-related problems continue, and further aggravation of the situation is expected. In all likelihood, in the coming months, businesses will find it difficult to maintain jobs, and those left without jobs will place an additional burden on both the state and society at large.
 
As for the tourism and hospitality industry, everyone understands that this sector is one of the most affected by the pandemic. The sector is fully on pause. Most of the companies operating in this sector (regardless of whether the company is large, medium, or small) will face quite serious problems if they face the need to pay the income tax accumulated by December 1 of this year, "- said BAG.