Georgian FIZs demand benefits for using local raw materials

Georgian FIZs demand benefits for using local raw materials

access_time2019-05-14 12:48:36

The free industrial zones (FIZ) operating in Georgia demand  changes to the current law regulating their activities.

According to Giorgi Tabidze, Director General of the Georgian Technology Park , the law is outdated and should be adjusted. Incentives should be imposed for the use of local raw materials to encourage entrepreneurs to use local materials in production.

“Today import of local raw materials into the FIZ is taxed at 4% that is wrong. It doesn’t affect our FIZ since the operating companies have practically no contact with Georgia. But the situation is quite different in Poti and Kutaisi free industrial zones  where this problem is much more acute and for them  this provision into the law should be introduced,” he says.

Tbilisi Free Industrial Zone (FIZ) was established in 2015 on the outskirts of Tbilisi, on the area  of 17 hectares. Currently, up to 200 companies enjoying  a number of advantages are registered in the FIZ - they are exempt from profit tax and tax on dividends. Trading and business activities with them are also exempted from VAT, FIZ employees do not pay income tax, export for the  companies operating in the zone is exempted from VAT.

The land on which the FIZ is located is exempt from property tax.


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