Five business associations operating in Georgia issued a joint statement on the current economic situation and the anti-crisis plan of the government.
The associations are:
- Federation of Manufacturers of Georgia
- Business Association of Georgia Distributors
- The Union of Taxpayers of Georgia
- Georgian Employers Association
- Business Council of the European Union and Georgia
The associations call on the Georgian government to temporarily suspend the payment of income tax and pension contributions.
Besides, they say it is necessary to change the VAT taxation rule, defer the payment of property tax, and also restore the benefits of the so-called "Golden List" and distribute them to the entire business.
"We welcome the government's plan to cope with the economic crisis. As our country is in a difficult situation, the Georgian government should take bold, concrete and efficient steps to ensure the country's economy not to face a catastrophe.
Thus, we have made a list of specific steps that should be taken by the government during the crisis.
Our recommendations are:
1) To immediately cancel the so-called yellow corridor during customs clearance, as it is an inhibitory and unpredictable mechanism.
2) To change the rule, according to which, payment of VAT will occur after the sale of products. It is also imperative to restore the principle of so-called a "golden list", so we distinguish that the new rule will apply to all companies.
3) To suspend the payment of income tax for six months;
4) To suspend pension contributions for six months;
5) To postpone an obligation to pay property tax in June for six months.
We are hopeful for the Georgian government to consider the recommendations to avoid severe problems in the country's economy, "the joint statement reads.
Bela Gelashvili
News Author