Government announces decriminalization of economic crimes

The Government has proposed to decriminalize some economic crimes. 

This was one issue stated among the Government's strategic plan.

The social-economic development strategy project "Georgia 2020” was revealed today.

The changes included improving the investment and business environment, simplification of tax administration, optimization of tax penalties, decriminalization of certain economic crimes and reduction in tax legislation restraint period.

Since 2004, Georgia started a wave of reforms aimed at liberalising the economy, eliminate bureaucratic barriers and reduced tax burdens, an evaluation of the current situation of the strategy project revealed.

The document highlighted the Government’s readiness to ensure equal possibility in starting and producing business, ensure transparency of public governance and being the key guarantor protecting of property rights.

As follows the social - economic development tasks set by the Government until 2020. It includes:

• Georgian Government working on the relevant legislative initiatives, as well as improving administration to ensure effective implementation of reforms, which encourage private sector competitiveness and inclusive economic growth.
• The Government tax policy provided an attractive and stable fiscal environment for the private sector and foreign investment, as well as business startup and development.
• Within the agreement of deep and comprehensive free trade between Georgia and European Union, customs legislation will be harmonised with the EU legislation.
• Minimal amendments to the Tax Code of Georgia.
• All the basic obligation of the taxpayer shall be determined only by law.
• Tax administration to be simplified and tax sanctions optimised.
• Decriminalization of certain economic wrong-doings.
• Reduction in the limitation period prescribed by the Tax Code.
• The legal relationship between the state and the business will be based on the principles of equality.

To improve recent problems and maintain a stable business and investment climate, a number of legislative and institutional changes are required, as well as the strengthening of the judicial system, stated in strategy project "Georgia 2020”.

"A strong and independent court is one of the conditions of business and investment climate improvement, especially in terms of protection of property rights. The Government provides an illegitimate inadmissibility of interference in business interests,” the strategy project "Georgia 2020” stated.