Business Got 360 Mln for Reinvesting as a Result of Amendments to the Tax Code

access_time2017-11-14 17:33:09

According to the leader of the parliamentary majority Archil Talakvadze, as a result of the reform providing for the exemption of businesses from paying taxes on reinvested profits, the business received an additional GEL 360 million for investing in the business.

The law came into force on January 1, 2017 that led to a large-scale  price hikes- in order to compensate for the loss of nearly 300 million, the government increased a number of taxes - in particular, excises for fuel, cars, cigarettes  and alcohol.

 As a result, revenues from the income tax were reduced, but excise payments increased – a volume  of excise tax revenue increased by 615 million and amounted to GEL 1.6 billion. Benefits for  business were introduced at the expense of consumers, which on average spend 10-20% more than last year.

It remains unclear how successfully the released funds were used, and how much a volume of domestic investment has grown.

 





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