New reform to ease access to capital for start-ups
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Georgia is starting a reform for the provision of start-up capital to support entrepreneurs turn their new business ideas into reality.
Georgia’s Finance Minister Mamuka Bakhtadze said young entrepreneurs and start-ups are the driving force behind any country’s economy and the government’s goal is to support them.
"Today our budget is formatted by about 300 companies, which is a bad tendency. This means that we have such sectors in economy where the high risk of monopolisation is occurred. This makes our economy less sustainable.
"At the same time we see high interest rates which do not give a chance to start businesses. The banking system should not be a brake for economic development, but its driving force.
"Taking into account these circumstances we decided to start the largest scale reform in our economy, which aims to provide young start-ups with zero interest rate capital”, said Bakhtadze.
The Government of Georgia is introducing three new tax initiatives that aim to support businesses in Georgia, improve the business environment and increase the share of small and medium sized business in the country’s economy. Recently, Georgia’s Finance Ministry also introduced new tax breaks which will apply to small businesses in Georgia.
The Georgian Ministry of Finance is introducing new tax breaks to Georgia’s business society and especially to those who are based in the regions of the country.
The Government of Georgia is launching a second wave of small business assistance efforts building on the successful programs such as ‘Produce in Georgia’, agriculture programs like ‘Plant the Future’ and others. Georgia’s Finance Minister Mamuka Bakhtadze initiated a new legislative package at today’s government meeting that concerns tax breaks for small businesses.
Georgia praised for ease of compliance with tax law
Georgia ranks 22nd out of 190 countries according to the World Bank and PwC Paying Taxes 2018 report, which compares countries by the ease of complying with tax law.
Georgia’s Ministry of Economy, the Ministry of Finance, Parliament, the National Bank, the Partnership Fund, the local banking sector and a Turkish delegation are teaming up to develop new initiatives for promoting small and medium-size business and make access to finances easier for them.
Georgia’s Prime Minister Giorgi Kvirikashvili welcomes an amendment package for easing excessive debt burden in Georgia, saying "it is important for the economic and financial sustainability in our country”.