What does Finance Minister Candidate plan for 2016?

The candidate Ministry of Finance Nodar Khaduri plans to introduce "several important reforms” next year, including simplifying the Tax Code and creating better conditions to the business society.

Khaduri together with four other candidate ministers delivered his speech at yesterday’s parliamentary committees’ sessions, where he unfold his priorities, views and future intentions if confirmed by Parliament today.

Khaduri was among the nineteen Ministers who were automatically suspended from their powers since the resignation of Prime Minister Irakli Garibashvili on December 23.

Before re-approved by the legislative body, like other candidates for ministerial posts, Khaduri had to share his views to the MPs.

Making Georgia more attractive for the business society was one of the main priorities for the Finance Minister. Khaduri said the Government had already managed to free business from terror. Now the candidate Minster planned to become "friendlier” towards business and make doing business easier in Georgia after introducing legislative amendments in this direction.

The main priorities for the Georgia’s Finance Minister in 2016 will be:

• Fiscal stability;
• Friendly attitude towards the market and business;
• Fulfilling the social liabilities and improving the efficiency;
• Improving the efficiency of the investments projects and;
• More transparency and involving business in decision making activities.

Georgia’s candidate Finance Minister also aimed to simplify the Tax Code. The amendment will come into tax limitation period.

According to the amendment the six-year limitation period was reduced to three years. However, according to article 309, paragraph 62, the three-year term was regulated and defined as follows:

• From January 1, 2015 to January 1, 2016 period - 5 years and;
• From January 1, 2016 to January 1, 2017 period - 4 years.

The limitation of 6-year term was extended until 1 January 2015, while the 3-year shifting period will start from 1 January 2016.

Meanwhile, Khaduri planned to involve in the process of solving the "identified problems” the business society faced in Georgia together with the representatives of the business society.

We would like to offer you to take completely revolutionary steps forward in the direction of forced execution. It is possible to solve this problem in a way that tax office could perform its function without hindering the business,” Khaduri said.

The candidate Minister added the tax audit process will become more time-limited in order to avoid "further problems” to the business society.

Proposed changes also considered scrapping several types of unpaid taxes, including unpaid tax debts that originated before 2011. As for the tax debts that were originated before 2013 they would be written off in case the taxpayer did not have any activities within the following period.

Before re-approved by the legislative body, like other candidates for ministerial posts, Khaduri had to share his views to the MPs. Photo by Press Office of Georgia's Finance Ministry. 

Changes also related to import tax. Khaduri said import would exempt from value added tax (VAT). The Finance Ministry will also make income tax reform next year.

Meanwhile, the Finance Ministry planned to launch an accounting reform which aimed to improve auditing and accounting framework in Georgia, develop capital markets in the country and improve the efficiency of financial sector.

Khaduri believed, the changes to make Georgia’s financial services more transparent would help local businesses to go beyond borders and allow external investors to easily become part of the local business environment.

Khaduri planned to start dialogue with the banking sector representatives regarding deposit insurance system. The draft law on deposit insurance system will be proposed to the Parliament in the first half of 2016, announced Khaduri.

Meanwhile, Khaduri has declared the budget was fulfilled without violence in 2015.

We have shown budget can be fulfilled without violence. The budget has become much more transparent. Georgia is ranked 16th among 102 countries in terms of budget transparency. We have managed to take and fulfill significant commitments without creating threats for fiscal stability,” Khaduri said.

The new Cabinet will be voted today. A plenary session will presumably begin at 13:00.