15.Oct .2020 17:15

Will Businesses Receive Another Tax Break? – Prime Minister Answers BM.GE.

Will Businesses Receive Another Tax Break? – Prime Minister Answers BM.GE.
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According to the government decision, for a period of 6 months from May 1, 2020, salaries up to 750 GEL will be exempt from income tax. The first 750 GEL salary up to 1500 GEL will be exempt from income tax. This means exempting employers in the private sector from a maximum of 150GEL for monthly salary.

The mentioned 6 months period expires at the end of the month. Businesses are applying to the government with a request to postpone taxes for another 6 months.

BM.GE asked Prime Minister Giorgi Gakharia what he has to say to businesses today and whether the taxes will be postponed. Our question was also about the extension of the benefits imposed on tourism and related industries, which also expires at the end of October. We are talking about property taxes and income tax deferrals.

Prime Minister refrained from giving a direct answer to the question regarding tax benefits:

"We say today that no severe, systemic restrictions, systemic lockdown is planned in the country, so our main strategy today is point restrictions, which we follow and implement.

As for tax breaks ... The Georgian government will continue to stand by businesses, especially those directly affected by this global economic crisis, including tourism. The tourism business has suffered the most. The state resources are not inexhaustible, but we understand that helping these sectors for rapid, post-crisis recovery is our common interest, so we will continue to help" - said Giorgi Gakharia.