Small business still faces problems

The new tax code has been promoted by the Government as very liberal and business-oriented as it gives many benefits to small and medium-sized businesses. It has also introduced the new concept of the micro business.

In the current legislation a small business is defined as one whose annual turnover does not exceed GEL 100,000. The new tax code initially increased this limit to GEL 200,000, but all of a sudden, without further explanation, it was put back to GEL 100,000 again, although Parliament had confirmed GEL 200,000 at the first hearing. So the tax advantage so much promoted by the Government has disappeared.

Economic analysts are curious about this and small businessmen upset. The opposition are critical as always. We are sure Western observers will also express their concern.