Plans to Unite Financial Police, Tax and Customs Services Unveiled

The Financial Police, Tax and Customs departments will merge as a result of a reform aimed to ease ties between the state and business, Georgian Finance Minister Lexo Alexishvili said on November 9.

A relevant draft law is ready for consideration by the Parliament and will enter into force starting from 1 January 2007, he added.

Alexishvili said that the Revenue Service ? the name of the new unified structure ? will have three major functions: providing service to taxpayers, providing information, and control and investigation of alleged financial wrongdoings.

?The major tasks will be to, on the one hand, provide full service to taxpayers and on the other hand to continue fight against economic crimes,? Alexishvili said.

Chief of the Revenue Service will be nominated by the Finance Minister and approved by the Prime Minister, according to the draft law.

?It is too early now to speculate on possible candidates,? Alexishvili said.

But the Georgian media sources reported that several candidates are being considered by the authorities, including Davit Kezerashvili, the controversial chief of the Financial Police.

The reform was first unveiled by President Saakashvili in August, 2006. Saakashvili said the authorities? attempts to ?decriminalize financial relations? between the state and entrepreneurs was a major motive behind the initiative.

It is most likely that major debates in the Parliament about the proposal will involve the role and functions of the Financial Police in the new structure.

The Financial Police was set up in February 2004 to fight economic and financial crimes and to probe into tax evasion cases. The unit, which is currently part of the Finance Ministry and is under the direct subordination of the President, has turned into an extremely influential institution and has often been the target of fierce criticism for its high-handed tactics.

?The proposal does not envisage the cancellation of the Financial Police, so we will not support the initiative,? MP Zurab Tkemaladze of the Industrialist party said on November 9.

?There is no need for the Financial Police at all. This is a structure used to terrorize business, so it should be closed down,? MP Davit Zurabishvili of the Democratic Front parliamentary faction said.

But lawmakers from the ruling National Movement party downplayed the opposition?s criticisms.

?The implementation of this new initiative will help to liberalize relations between the state and business,? MP Maia Nadiradze, leader of the parliamentary majority, said.

This post is also available in: ქართული (Georgian) Русский (Russian)