PM Bakhtadze: small business revenue doubled in Q3 of 2018
PM Bakhtadze said that the success of Georgia’s economy is determined by the development of small and medium sized businesses. Photo: PM's press office.
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Small business revenues have doubled in the third quarter of 2018, increasing by almost 100%, says Georgian Prime Minister Mamuka Bakhtadze.
Bakhtadze stated that a tax regime for small businesses that came into play on July 1, 2018 is unique throughout the world and is an important step towards inclusive growth.
Per the new tax initiative, the turnover tax for small entrepreneurs has been reduced by five times. This far-reaching reform applies to almost 100% of individual entrepreneurs.
Instead of five percent, small businesses' revenues from now on will be taxed at one percent, and smaller businesses will be able to keep the simplest tax accounting in the future.
Bakhtadze said that the success of Georgia’s economy is determined by the development of small and medium sized businesses.
We need more inclusive growth in the country. We need to continue all programmes and create more mechanisms to increase the share of small and medium sized businesses in the total gross domestic product. The number of active entrepreneurs exceeds over 70,000 and the registration processes of new entrepreneurs continues actively”, Bakhtadze said.
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The turnover enjoyed by Georgia’s business sector is increasing, reaching 71.7 billion GEL in 2017. This was 12 per cent more year-on-year (y/y).
"A tax regime for small businesses, which is unique throughout the world, is already in force”, says Prime Minister of Georgia Mamuka Bakhtadze. Per the new tax initiative that came into play on July 1, the turnover tax for small entrepreneurs will be reduced five times. This far-reaching reform applies to almost 100 percent of individual entrepreneurs.
The Government of Georgia is launching a second wave of small business assistance efforts building on the successful programs such as ‘Produce in Georgia’, agriculture programs like ‘Plant the Future’ and others. Georgia’s Finance Minister Mamuka Bakhtadze initiated a new legislative package at today’s government meeting that concerns tax breaks for small businesses.
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Small and medium sized businesses in Georgia will have better access to finances thanks to a new credit guarantee programme that will be launch in the first quarter of 2019, Georgian Prime Minister Mamuka Bakhtadze announced today.
Small and medium sized businesses in Georgia will have better access to finances thanks to a new credit guarantee programme that is coming into force today.
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All companies operating in Georgia will now have to abide by the same deadline for paying import taxes – five days instead of the former 30 for certain companies.
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Business society asks for additional consultation
Amendments to the order of Georgian Finance Minister issued on May 31, 2019 in the instruction on the movement and registration of the goods brought into the customs territory of Georgia, caused dissatisfaction among the Georgian business society.
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The business society of Georgia has called on Prime Minister Mamuka Bakhtadze to explain the cancellation of customs procedures for companies included on the so called ‘golden list’.