Saakashvili Speaks of Agriculture Development
President Saakashvili said on June 22 that customs tariff rates will not be reduced to a zero percent on imported agricultural raw products in order not to harm local production.
?I have categorically prohibited abolishing custom dues in the field of agriculture… because we should stimulate processing of local agricultural products as much as possible,? Saakashvili said while meeting with top executives of the Georgian food producing companies.
In early June, the Parliament postponed to discuss with its second hearing the government?s proposal on reduction of both number and rates of customs tariffs. The parliamentary majority was at odds, as some lawmakers including Parliamentary Chairperson Nino Burjanadze were against of zero percent tariff on imported agricultural raw products.
President Saakashvili also said on June 22 that development of ?a strong agricultural complex? should be one of the major priorities, ?as the majority of the Georgia?s population lives in the rural areas.?
He said that the government plans to invest over USD 100 million in the agrarian sector.
Saakashvili also said that the government is ready to introduce profit tax exempts in cases of reinvesting in the agricultural sector.
?This is very important in order to give an impetus, to employ more people and to produce more products,? Saakashvili said.
?Today the situation is bad. Georgia still suffers deficiency of agricultural products on the domestic market. Instead of being a great exporter, Georgia, which is an agrarian country, still imports various agricultural products from abroad,? he said.
The Georgian President noted that a positive tendency was observed in 2005-2006 years, since several new processing enterprises were opened in the country.
