The Ministry of Finance is working on property tax reform. The annual tax is no longer determined by income.
According to Giorgi Kakauridze, Deputy Minister of Finance, the agency will submit a draft bill to the parliament in the spring session. He notes, that at this stage the impact assessment of the reform is underway, which will be followed by consultations with the municipalities.
The Deputy Minister of Finance says that as of the new reform, the property tax will depend on the size of an area that companies or individuals own.
"Perhaps the value will be determined according to specific zones and the price of square m. It is too early to talk about the details, because an assessment is needed and consultations with the municipalities have to be done.
As for the current limit of GEL 40,000, this is not a correct assessment method, becuase a person can be the owner of a large property without having any income at all," said the deputy minister.
