The Investors Council Secretariat of Georgia, established by the EBRD and the Government of Georgia, published a study prepared by PwC that includes strategies for economic recovery.
According to the study, income tax will have the most positive effect on economic growth.
As of today, all employees of Georgia pay 20% of their salary in the form of income. If this figure is reduced to 15%, the country's economic growth is expected to accelerate by 1.7%, while a reduction to 12% will increase it by 2.7%.
Finance Minister Lasha Khutsishvili declares that without macroeconomic stability, such measures make no sense.
"The main message of the PwC study is that reducing the tax burden on the indirect tax is less important than reducing the direct tax burden, or the effect of direct taxes on the economy is greater than the indirect effect. We talked about this even when we were working on the profit tax reform, that the transformation of direct taxation in this form would give an extra boost to the economy, and it even appeared. You might remember, there were the appropriate fiscal instruments to offset it – these were excise tax and a fee for the gambling business.
Thus, when we talk about economic growth and business support, we must keep in mind that without macroeconomic stability, these measures do not matter and it is important when the country has macroeconomic stability. Today, there is no possibility for the country to maintain macroeconomic stability and impose additional tax benefits," Lasha Khutsishvili declares.
Finance Minister cited a high budget deficit as an argument, which was 9.3% last year and 7.6% was predicted for this year. He notes, that the government plans to adjust the forecast to 7.1%.
See all the news
Financial Services in CAREC
#TheCheckpoints: TIWB & Georgia - Interview with Rusudan Kemularia, Head of TIWB Secretariat
Stoli® Group to Release Limited-Edition Bottle in Support of the Ukrainian People
როგორ მოხვდა 17 წლის ანასტასია ლელაძე ჰარვარდში? - ანასტასია ლელაძე ქალების ნარატივში
"Literally the whole village was waiting for the first harvest of strawberry" - Kvitsiani family from Svaneti
Aliyev replaces long-serving central bank head with loyalist
Putin imposes visa restrictions on citizens from 'unfriendly' countries
BMG-ს მედია რუბრიკა: #პროფესიონალი - გიორგი მიქაია
Business Leaders Council by USAID and Georgian Business
ვინ არის მსოფლიოში #1 სნაიპერი “Wali”?
ბინების ქირის ფასი 50%-მდე გაიზარდა
"Today we are all Ukrainians"- Zurab Pololikashvili
Tourism is the main bridge for building understanding - ZURAB POLOLIKASHVILI
FAQ’s and Analysis on Lari & FDI - Interview with Fady Asly
მინერალური და მტკნარი წყლის ფასები ქართულ ბაზარზე
China continues to push competitors out of the global walnut market
Moscow to Host First Meeting of Turkish & Armenian Special Envoys on Jan 14
Scientists Discover New Part of the Human Body
Turkey's Exports Soar by 33.7% to $21.5B in November