Georgian government calls on TV channels to pay off tax debt

Georgian Finance Minister Ivane Matchavariani has called on leading Georgian TV companies with high tax debt to present plans to restructure their accumulated debt within about two weeks. 

Matchavariani said that previously, TV companies used to accumulate debt which was then later written of. He said this is a “malicious practice and it is time to change it”.

He said that the indebtedness of larger TV channels is particularly unfair taking into account that there are smaller TV companies which pay their taxes ‘honestly’, while larger companies accumulate debt. 

Matchavariani said that there are a number of models, agreements and timetables that can be used for TV channels to ease the tax and debt burden. 

Matchavariani stated that it is necessary for TV companies not to accumulate debts anymore and to gradually pay off outstanding taxes accumulated over the years.

The Georgian TV companies that face debts are:

• Rustavi 2 TV – 28 million GEL
• Imedi TV– 19 million GEL
• Maestro TV– 8 million GEL

A financial crisis has led the new owner of Rustavi 2 Kibar Khalvashi to sell the company as, in his words, his “financial ability is not enough to pull the company out of a deep crisis”.

• New owner of Rustavi 2 announces sale of TV company