Proposed tax amendments will seek to help complete construction of unfinished buildings
Amendments to the Tax Code have already been prepared and are planned to be submitted to the next sitting of the Parliamentary Bureau. Photo: Nino Alavidze/Agenda.ge.
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Proposed amendments to the tax code are looking to resolve the issue of numerous incomplete construction sites by offering incentives to companies who will dismantle unfinished buildings across the country and build new ones on the same site.
According to the current Tax Code, unfinished buildings on which construction began before August 8, 2008 have been exempted from paying value added tax since 2015.
However, under the construction law, when an existing unfinished building is dismantled and replaced with a new building, it is already considered as a new construction and requires a new construction permit.
In this case, as the new construction permit is issued after August 8, 2008, the Tax Code cannot provide any benefit to the developers.
Amendments to the Tax Code have already been prepared and are planned to be submitted to the next sitting of the Parliamentary Bureau.
Buildings on which construction began before 2008 and which are still not completed may be made exempt from paying value added tax until 2026, announced Georgian Prime Minister Giorgi Gakharia at a government meeting earlier today.
The Labour Conditions Inspection Department carried out a total of 1,254 inspections and reinspections at construction sites in 2019, says the Ministry of Health.
A total of 51 construction companies including some of the major players on the Georgian market such as Axis, Domusi and Balavari are not following safety rules during construction, announces the Georgian Ministry of Health.
Tbilisi City Hall has drafted a bill and sent it to parliament earlier today which makes several construction violations a criminal offence, which are currently only considered administrative violations. The violations which might become a criminal offence include violations in height parameters, illegal construction works, ignoring an official demand to suspend construction and several others.
Georgian Prime Minister Irakli Garibashvili has announced today that the government plans to tighten construction regulations even further. "Construction permit issuance procedures should be strictly controlled and such a mistake should not be allowed a second time", said Garibashvili, referring to a residential building which collapsed in the Black Sea coastal city of Batumi last week killing nine.
The Asian Development Bank (ADB) and local company Optima have signed a $10 million loan to develop affordable and sustainable residential housing developments in the Georgian capital city of Tbilisi, announces the ADB. The loan will finance two residential complexes, providing over 3,700 affordable and energy-efficient apartments for people on low-to middle-incomes.
A total of 10,095 building permits covering 7.4 million square metres were granted in Georgia throughout 2021, the National Statistics Office of Georgia (Geostat) revealed today.
The Georgian government will offer developer companies on the Georgian market guaranteed construction orders to ensure 1-2 percent additional economic growth through attraction of new finances from banks for the developers.