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