The Government of Georgia is fostering dialogue with local business leaders by introducing four major reform ideas that aim to change the country’s investment environment for the better.
The four reforms Georgia’s Prime Minister Giorgi Kvirikashvili discussed with members of the local business society at today’s meeting were:
Modifying Georgia’s income tax rules – This reform was about aligning the country’s tax system with the Corporate Income Tax (CIT) – the Estonian Taxation Model. Under the Estonian Taxation Model all businesses, except profit-sharing businesses, should be exempted from income tax.
Kvirikashvili said Georgia’s economic team has already sent the draft law to Georgia’s Parliament for approval. If approved, the amended law will come into force in July 2016.
Governance reform - A special unit, called Front Office, will be created at the Administration of the Government of Georgia to monitor transparency and deadlines of decision-making processes.
Accelerating Georgia’s infrastructure projects – The aim of this reform was to implement infrastructural projects "in the shortest time”. Kvirikashvili said projects should be completed in about four years instead of by 2023.
Higher education reform – The Georgian Government planned to introduce the German model of higher education where authorities will fund the most needed professions.
As well as the four major reforms Kvirikashvili also spoke about the new pension system which will launch next year in Georgia. He said the Government was working on amending legislation in this direction.
Meanwhile, a capital market reform was also planned for the future, the PM said.