The Government of Georgia must have communication with the business in the decision-making process. They listen to the recommendations, but sometimes their decision comes as a surprise to the business, - Giorgi Kacharava, Executive Director of EU-Georgia Business Council said. He said they had offered a number of recommendations to the government.
"Predictability is very important for the business. Potential investors and local businessmen also attach special importance to both political and economic stability, as well as predictability. In this regard, I think many steps can be taken. We have offered to establish a format within the Interagency Coordination Council for communication with the business sector. In addition, we asked the authorities not to make sudden decisions on any possible future restrictions and not to put businesses in front of the fact. We must notify the business as soon as possible if any restrictions are expected," Giorgi Kacharava said.
According to him, one of their recommendations is to start consultations on tax cuts.
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%.
