Deputy Finance Minister: ‘Golden List’ of big companies remains

Deputy Minister of Finance Lasha Khutsishvili stated the so-called Golden List of big companies, which gave them some privileges in terms of simplified procedures, was not abolished and it remains.

In his June 11 Facebook post, Khutsishvili writes that there are over 200 companies in the Golden List whereas around 50,000 companies do not comply with the list criteria.

“The Golden List does not go anywhere and will not be abolished! Golden List remains! Only they will no longer enjoy the cancellation of paying tax. But they will have other benefits from simplified procedures (as it is accepted in all countries),” he wrote.

The post also reads that all companies must be placed in the same conditions and must enjoy the same procedures.

“I understand that it is quite difficult to lose some privileges, especially when these privileges exist for a long time but the argument that 200 companies are in a hard situation and therefore all the companies should not be in equal conditions, is the wrong strategy,” Deputy Minister explained.

From June 12, the so-called Golden List companies will no longer enjoy the benefits and will have to pay import tax for 5 days instead of the previous 30 days, like small and medium businesses usually do.

The changes were made according to the Order No. 162 signed on May 31 by the Minister of Finance of Georgia Ivane Machavariani.

More specifically, according to the decision of the Finance Minister, about the law on Approval of the Regulations on the Customs of Declaring Goods on the Territory of Georgia, the amendment was made to the former Minister of Finance of Georgia’s decision made on July 26 2012, after which, the 5-day period of paying import duties will be applied to the companies which are members of the Golden List.

Golden List is a list of large companies which show maximum GEL 5 million value goods in export or import. The company can become a member of the list if it shows a high rate of import duties paid by them - no less than GEL 900,000. Golden List member companies also must have a high amount of customs declarations submitted for the import or export of goods - no less than 100.

The companies expressed dissatisfaction regarding the changes made by the minister. Some sources even said the amendments mean the Golden List has been automatically abolished. However, as stated by the Deputy Finance Minister, only some benefits were abolished for Golden List companies and not the list itself.

Business Ombudsman Irakli Lekvinadze said last week the changes came too fast, adding he believes they should be postponed or the benefits for Golden List companies should be maintained.

“The Finance Minister’s strict argument was the agreement with the IMF, which was reflected in a different period of time, but I once again say that it [the changes] was a surprise to the business and became the painful issue because we learned about it after the decision was made,” he said.

Some of the most prominent members of the “Golden List” are: JSC GEFA (GPC); JSC Teliani Valley, Tegeta Motors Ltd, Vioni Georgia” LTD (Beeline); JSC Sarajishvili; Rompetrol, Magticom, LLC Elizi Group, Wissol, Lukoil, , Aversi-Pharma Ltd, Caucasus Online, Elite Electronics, LC Waikiki, New Hospital, SOCAR and Energo Pro-Georgia, etc.