Ruling Majority Undecided About Tax Benefits for Print Media

A decision about the possibility of prolonging tax benefits for the print media will be made after additional discussions, Parliamentary Chairperson Nino Burjanadze said on December 21.

The two-year tax exemptions were introduced by the tax code approved in late 2004.

For the past two years the Georgian print media has enjoyed preferential tax benefits through an exemption from the 18% value-added tax, 20% profit tax and tax on property.  In the period between 2005 and 2006 the print media was paying only 12% income tax and 20% social tax.

Opposition lawmakers proposed that the tax benefits be prolonged for at least two more years.

?This is an issue that needs additional consultations. We will listen to arguments of representatives from the print media and we will jointly decide this issue,? Nino Burjanadze said at the parliamentary session on December 21.

In 2004 when the issue was discussed, then Finance Minister Zurab Nogaideli, who is now prime minister, was against tax benefits for the print media. But President Saakashvili supported the idea, citing the necessity to support the development of a free press.