Saakashvili Offers New Economy Initiatives

• Immediate refund of GEL 35 mln VAT;
• Business to join tax dispute council;
• Finance Minister to decide on sealing companies;

President Saakashvili said that Georgia had overcome “the sharpest phase of economic crisis” and now the private sector should overcome “fear, which still follows some of them by inertia” and launch investing.
 
Speaking at a live televised government’s session in a resort of Lopota in Kakheti region, Saakashvili said the government would give more incentives to the business to stimulate investments.

He said that amendment should be made to the 2009 state budget, envisaging an immediate refund of total of GEL 35 million of value added tax (VAT) to the companies. He said that normally this process would have taken from six to eight months, “but now we are returning these funds immediately.”

“So we are giving you back this money, which you have paid as VAT so you can reinvest this sum in business,” he said.

Saakashvili said that the measure was a response to businesses’ complaints that they have not enough funds for reinvestment.

He also offered to allow representatives from the Federation of Georgian Businessmen and Chamber of Commerce and Industry to take a seat in a council dealing with tax disputes between entrepreneurs and the state. He said the measure would help to make adjudication of tax disputes transparent.

Saakashvili said that his third initiate was to ban sealing of companies for more than 48 hours by decisions of lower level tax officials; he said a decision of Finance Minister should be required for that measure.

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