New tax code adopted

The Georgian Parliament adopted a new tax code at its third and final hearing. The major paragraphs of the code will come in to force from January 1, 2011 and the rest from September 1 2011. The opposition did not support the new tax code, saying that there were very few changes being implemented. Whereas, the ruling authorities claimed that it was an innovative code, facilitating business development.

Finance Minister, Kakha Baindurashvili, stated that the new tax code's controversial clauses were negotiated and agreed with business representatives. There are many clauses in the new code concerning the consumption of VAT. One of the novelties of the new tax code is the establishment of an institute for taxation ombudsman, new systems of taxation and the reduction of certain taxes. According to Baindurashvili, this is a liberal code compared with its predecessor, which was rather stringent because of the conditions at the time it was drafted.

The Opposition were unhappy because, initially, it was promised that small entrepreneurship would be defined as those businessmen whose annual trade turnover was up to GEL 200 000. But in the final version the figure decreased to the small amount of 100 000.