“Free Business Association” (FBA) is calling on Georgia’s Ministry of Finance to raise the value-added tax (VAT) registration threshold from GEL 100,000 to GEL 300,000, arguing that the current limit no longer reflects the country’s economic reality. The association says the threshold, which has remained unchanged since 2005, has become a growing burden for small and medium-sized enterprises.
According to the FBA, key economic indicators such as inflation, rising operating costs, and changes in purchasing power mean that the existing threshold is outdated. The group estimates that over the past two decades, overall price levels in Georgia have increased by around 2.7 times, while real economic output has nearly tripled.
On this basis, the association argues that increasing the VAT registration threshold to GEL 300,000 would better align with current conditions. It says such a reform would reduce tax pressure on smaller businesses, encourage growth, and improve overall economic activity.
The FBA is urging the Ministry of Finance to begin reviewing the proposal, saying the change would support employment, strengthen small business development, and ensure the tax system is more closely aligned with today’s economic environment.
