A very welcome first step

The first very important step taken by new Prime Minister Grigol Mgaloblishvili has been the decision to decrease income tax from 25% to 20% and dividend tax from 10% to 5%. This should result in the improvement of social conditions and the stimulation of business development.

Initially the state planned to decrease income tax gradually, by 1% annually, but the new PM , we want to believe, took the initiative to make this emergency decision to support the population in a dire situation.

Minister of Finance Nick Gilauri is optimistic and expects an extra GEL 250 million input into the country’s economy. Financial analysts assume that this advantage, however small, could stimulate small and medium-sized businesses. Experts have unanimously welcomed the move, made as it was against the background of world economic crises and the results of the Russian invasion.