50 businesses in mountain regions benefit from state support
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Dozens of businesses in Georgia’s mountain regions are benefactors of state support that reduces their tax obligations and supports the development of local businesses.
About 50 enterprises located in different mountainous areas are benefitting from the special taxation system, while 13 today were granted the status of ‘Mountainous Area Enterprise’, announced Georgia’s Ministry of Finance.
The special taxation system saw entrepreneurs in the mountainous regions be exempt from paying profit and property taxes (legal entities), while physical entities were exempt from paying income and property taxes for a 10 year term.
This was part of the Government’s recently introduced Mountain Law of Georgia, which aimed to support entrepreneurs in Georgia’s mountainous areas and make business easier for them as a way to stimulate their local economies. The Mountain Law partially came into effect at the beginning of this year and new aspects of the law will continue to be implemented throughout the year.
The Finance Ministry said the state support served to encourage people to live and work in the mountain regions, which in recent years had gradually emptied of people due to financial hardship.
Today we granted the status of Mountainous Area Enterprise to 13 enterprises,” announced Finance Minister Nodar Khaduri.
These businesses operated in "very important directions”, such as furniture manufacturing, construction, production of wine, beer and soft drinks, producing milk and processing milk products, baking, production of agricultural products, poultry and more.
Businesses operating in mountainous Georgia who wish to gain the status of ‘Mountainous Area Enterprise’ and enjoy the state benefits, company owners must submit an application to the Revenue Office of the Ministry of Finance.
The Revenue Office will forward the application to the Ministry of Finance within 60 days.
From there the Ministry will discuss the possibility of granting that business with ‘Mountainous Area Enterprise’ status at a Governmental meeting. Members of the Government must approve the application and grant the status.
People living in Georgia’s mountain areas will enjoy the first part of a benefits scheme on January 1, 2016 when the new mountain law comes into force.
Parliament of Georgia has adopted a new law to encourage people to live and work in the country’s mountainous regions.
Doctors who will work in Georgia’s mountainous regions for at least three years will get their residency programs funded by the Government.
Residents living in Georgia’s village communities are being urged to stand up and let their voices be heard through community meetings led by the Government’s Rural Support Program.
Georgia’s Government is offering a helping hand to its citizens living in the country’s mountainous regions by offering funding to people who launch a small business.
Initially the list identified 1,582 high mountain villages but today an additional 99 villages was added to the list. Residents of these 99 villages will now be able to reap the benefits of the new Mountain Law.
Creating better living conditions in Georgian mountain areas so locals don’t have to leave their home villages is one of the Georgian Government’s new target areas and projects are planned to achieve this.
Social assistance rules eased for rural population
Tough rules currently in place that make it difficult for people living in Georgia’s high mountain regions to receive social assistance, are being simplified so people in these areas can enjoy better living conditions.
The Georgian Government will continue to support Georgia’s high mountain regions to improve standards of life there.
The Georgian government has launched a small grant programme in the mountainous region of Khevsureti of Georgia to support locals and the development of tourism in the area. The Georgian Ministry of Economy will offer grants from 5,000 to 15,000 GEL to help locals start up businesses.
Highland regions of Georgia will welcome visitors with a range of activities introducing local cuisine, crafts and more as part of the annual Mountain Week, with the programme launching on Saturday.