Frequent changes of legislation hinder economic development
By Messenger Staff
Wednesday, March 31
Economic analyst Irakli Shavishvili, an auditor, thinks that Georgia’s major economic problem is a lack of stability in regulatory legislation. As is known, during the five years the tax code has been in force 53 amendments have been made to it. Some of these are of a technical character but some are very serious as they radically change the tax situation.
Such frequent changes put the taxpayers in a difficult situation and hinder them from making long term plans. Therefore businessmen target only short term activities and do not conduct long term investment activities.
Another issue is the lack of independence of the courts, as businessmen are left practically unprotected against taxation bodies. Using arbitration courts to resolve disputes does not take place very often either.
Shavishvili thinks that the market should be free from Government involvement. “The Government should be an unbiased arbiter,” he has told Rezonansi.
Such frequent changes put the taxpayers in a difficult situation and hinder them from making long term plans. Therefore businessmen target only short term activities and do not conduct long term investment activities.
Another issue is the lack of independence of the courts, as businessmen are left practically unprotected against taxation bodies. Using arbitration courts to resolve disputes does not take place very often either.
Shavishvili thinks that the market should be free from Government involvement. “The Government should be an unbiased arbiter,” he has told Rezonansi.