Acting PM: gov’t has to reconsider tax breaks which have been in question for a long time
On December 15, Acting Finance Minister Ivane Matchavariani said that tax breaks are not good for the economy while adding that the government has supported business as much as possible despite the fact that it does not support the idea of tax breaks. Photo: Nino Alavidze/Agenda.ge.
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The government will have to reconsider the tax breaks which have been in question for a long time, said Acting Prime Minister Giorgi Gakharia earlier today.
Everyone should understand that fiscal consolidation and discipline is a very important goal of the government, especially during the times of the economic crisis. We will have to review many of the tax breaks, the effectiveness of which has long been in question. We all need to understand that both our business and our citizens need to understand this. The most important thing for us today is the equal and efficient use of the limited resources of the state,” said Gakharia.
On December 15, Acting Finance Minister Ivane Matchavariani said that tax breaks are not good for the economy while adding that the government has supported business as much as possible despite the fact that it does not support the idea of tax breaks.
Taxing different sectors in different ways is very bad, not only fiscally, but in general it hinders the growth potential of the economy and pushes consumers towards misbehavior. We do not support individual breaks by sectors,” he said.
Matchavariani noted that this practice was implemented in the past and cannot be lifted at once, and said that it should be assessed where the tax breaks can be disposed of and maximally equalise the tax burden for all sectors.
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