PM candidate:“Inclusive economic growth is our priority”

Candidate for Prime Minister Mamuka Bakhtadze has presented his vision about the country’s economic development at an extraordinary parliamentary session on June 20.

In his speech Bakhtadze talked about how his new government sees the development of Georgia in various directions, including in the economic field. Bakhtadze stated that inclusive economic growth is the priority of the government's economic policy.

This means the involvement of society in the development of economy. Yes, we have a good economic growth rate, but it lacks the component of inclusivity. In the development of the country’s economy the private sector takes the leading role and its role should be increased even more. For this reason it is important to further improve the business environment”, Bakhtadze said.

How does the candidate for the country’s premiership plan to further increase economic growth in Georgia, improve the business environment, tackle poverty and other related challenges?

Here are some of the major promises that Bakhtadze announced will be implemented in the nearest future:

• Tax arrears of the period from before January 1, 2013 will be fully annulled;
• Reform on VAT returns will be implemented in 2018, which is expected to result in additional surplus capital for the country. As a result entrepreneurs will be able to pay VAT returns in 5-7 business days by filling out an electronic application;
• Exempting entrepreneurs from bureaucracy-related challenges. All documents that circulate in between the tax authorities and businesses circles will be cancelled and a single, digital format system will be created;
• To make the tax and customs codes simpler for entrepreneurs;
• All taxes except from the VAT will be developed by blockchain technology;
• New tax regimes will be created to support multinational companies establish regional offices in Georgia and get the most preferential tax system;
• Foreign investors will be able to register their companies online in Georgia, open bank accounts in Georgia’s banking system and also manage their companies online;
• Commercial courts will be established in the common judicial system, which will be specialised in reviewing commercial and tax cases;
• From July 1, 2018 a preferential tax regime will come into force for small businesses in Georgia which will reduce turnover tax for small entrepreneurs by five times. In addition, while in the past small businesses were defined as businesses with a turnover of up to 100,000 GEL, from now on those with a turnover of up to 500,000 GEL will also qualify as small businesses.

Furthermore, as Bakhtadze announced, capital market reform, pension reform, the development of the public-private partnership system and a responsible lending system are also planned.