Income Tax Cut by 5% Planned in 2009 – PM

Income tax will be decreased from 25% to 20% and dividend tax – from 10% to 5% starting from January, 2009, Georgian Prime Minister, Grigol Mgaloblishvili, said on November 11.

“It means that Georgian economy will receive additional GEL 250 million; it means that savings of the Georgian society will increase; this is the best precondition to create additional jobs,” he said at a meeting with a group of businessmen.

He said that the government was working over new economic initiatives and “I will inform you about them additionally.”

Last year Parliament approved a government proposal, which went into force on January 1, 2008, replacing the 12% income tax and 20% social tax with a flat 25% income tax. Afterwards the government submitted a five-year plan of gradual decrease of income tax, according to which in 2013 income tax should be reduced to 15%.

Initial schedule of gradual decrease of income tax was as follows: 24% in 2009; in 2010 – to 22%; 2011 – to 20%; 2012 – 18% and in 2013 – to 15%.

This post is also available in: ქართული (Georgian)