28.Apr .2020 18:25

It is impossible to fully register all self-employed persons - Irakli Makalatia


According to the government's anti-crisis plan developed due to the coronavirus pandemic, self-employed people will receive one-time grant of 300 GEL from the end of May. Applications can be submitted to the web-page of the Ministry of Health from May 21 to June 1, but not all self-employed people will receive assistance, for several reasons:

Initially, funds are not sufficient for everyone. The budget of the project is 75 million GEL, therefore a maximum of 250 thousand people will receive assistance, while the number of self-employed people, according to Geostat, is 840 thousand people.

The second is that a large proportion of the self-employed people cannot submit proof that they really had income.

Economist Irali Makalatia says it is impossible to fully register self-employed people. Makalatia thinks that most of the self-employed will be left without state assistance, while this is the most vulnerable category with the lowest-income.

"It is impossible to fully identify self-employed people. This is complicated by the fact that the category of self-employed is divided into 3 more categories, namely employers, individually employed and people employed in households free of charge.

Self-employed people in the household are those persons, who may not have an income at all, but are in the self-employed category. Their share in the self-employed is quite high – 40 per cent. They cannot submit a document that they are employed.

The second category is employers, which are easy to identify and about 5% of self-employment accounts for them.

Another large group, with a share of up to 50% in the self-employed, is independently employed persons. Most of them can be identified, but even here there are people who do not have documents, they are tutors and taxi drivers, "- said Irakli Makalatia.