How will the gov't support businesses amid the new coronavirus restrictions?

The government of Georgia has presented an anti-crisis plan for Georgian businesses in order to ease the burden caused by the coronavirus crisis. The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months.

The Georgian Business Association has asked the government of Georgia and the newly elected parliament to make changes to the Tax Code as soon as possible in order to extend the tax breaks imposed on businesses in the spring amid the coronavirus outbreak. 

Georgian Economy Minister Natia Turnava held a presentation today on how the government is planning to help the tourism industry reopen and overcome challenges caused by the coronavirus pandemic. 

The government of Georgia has imposed further restrictions to curb the spread of the coronavirus in the country. The restrictions that will be in effect between November 28 and January 31 are as follows: An effective curfew will be in force between the hours of 21:00 and 05:00. The restriction will be temporarily lifted on December 31 and January 6 (for New Year and Christmas). Restaurants and other food facilities will fully move to takeaway services which includes  takeaway, delivery and drive.

Georgian Finance Minister Ivane Matchavariani said that the new restrictions imposed by the government today give ground to revise the economic growth rate of 2021.

Georgia has reported 4,780 new cases of coronavirus, 3,489 recoveries and 37 deaths in the past 24 hours. Georgia has had 123,470 cases of coronavirus since February 26, 2020. Since then 102,270 individuals have recovered, while 1,161 others have died. 6,251 patients are undergoing treatment in hospitals as of today. 976 of the 6,251 patients are in critical condition. 375 of the 976 critical patients are on artificial ventilation. 

Georgia has reported 4,472 new cases of coronavirus over the last 24 hours, increasing the total number of cases confirmed since late-February to 127,942. Meanwhile, 4,058 people have recovered, increasing the overall recoveries to 106,328, while with 34 new fatality cases, the number of coronavirus-related deaths now stands at 1,195. 

Fitness club Reformer Fitness in Batumi has been closed by police and fined 10,000 GEL after it was rented out by libertarian Girchi party leader Zurab Japaridze, who offered the public to use the facility – what Japaridze called his ‘home’ – despite the coronavirus regulations forbidding the functioning of gyms.

Two individuals have been detained at a rally in Batumi earlier today in which the opposition and their supporters demand a meeting with the head of government of Adjara Autonomous Republic Tornike Rizhvadze. 

State-owned enterprises have lost about 130 million GEL in revenue due to the coronavirus pandemic reads the Fiscal Risk Analysis Document which accompanies the final version of the 2021 draft budget.

Georgian restaurant owners have offered a five-point plan to PM Giorgi Gakharia to save the hospitality sector, noting that the recent measures damage their businesses and it is hard for them to work only on takeaway and still fulfill their other financial obligations.

Shopping malls and branded retailers have released a joint statement today, demanding the Georgian government allow them to operate between December 15 to January 3.

The number of people employed in the Georgian business sector in the third quarter of 2020 decreased 7.2% compared to the same period of 2019, totalling 645,600 people. Of this number of employed people 40.8%were women and 59.2% were men.

The National Agency for Cultural Heritage Preservation of Georgia has temporarily closed museums and natural reserves to visitors due to the pandemic in the country.

Seven business associations have released a statement in response to the increase of natural gas prices for the commercial sector that are coming into effect on January 3, 2021 , saying that Tbilisi Energy’s decision is ‘not understandable amid the pandemic and the decision will also influence households as increasing prices for the business sector will increase costs and thus prices of products.’

Georgia is starting a new stage of social assistance this year amid the coronavirus pandemic, said Georgian Prime Minister Giorgi Gakharia earlier today, noting that people who have lost their jobs and have not earned a salary since December 2020 will receive 200 GEL per month over the course of the next six months. 

The turnover received by the Georgian business sector increased by 2.1% (y/y) and amounted to 32 billion GEL in the fourth quarter of 2020, says the National Statistic Office of Georgia (Geostat).

About 500 artists in the electronic and club music industry will receive financial assistance from Tbilisi City Hall, which has allocated 2 million GEL in order to help industry players overcome the Covid-19 crisis.

Individuals and legal entities leasing state property in Georgia and who have been affected by the Covid-19 outbreak will be exempted for back rent accrued between March 21, 2020 and March 21, 2021. In addition, they will be exempt from paying penalties imposed for non-payment of leasing fees, announces Georgian Economy Minister Natia Turnava.