Georgian Prime Minister’s Counselor Says Levying Excise Tax on Communications Companies is International Practice

@The new tax code will not expectedly levy a value added tax on higher schools and distributors of medical equipment.

Giorgi Pertaia, senior counselor of the Georgian Prime Minster, told GBC the Government has inaugurated active consultations with the business sector in this respect.

The new tax code will be maximally refined and this is guaranteed by the unprecedented coordination between the business sector and the government.

Pertaia says the issue of levying a value added may be revised, but the issue of levying excise taxes is beyond the revision.

Pertaia assures the levying an excise tax is in line with the international practice. The state and private sectors shave inaugurated consultations on only defining the excise tax rate (from 0 to 10 percent).

Pertaia persuades the fears as if the introduction of new liabilities will bring preferences for importers and make the domestic product uncompetitive have no grounds, as this is definitely banned by the World Trade Organization (WTO).

Along with the new tax code, the Georgian parliament will discuss the president-proposed Economic Liberty Act, which requires constitutional amendments.

“The code will meet the act requirements. The tax burden is not aggravated and revolutionary approaches will be introduced in tax administering issues, because the relations between the taxpayers and the state sector is brought within legal framework”, Pertaia said.

The new tax code is expected to come in force on January 1, 2010, as well as Liberty Act, under which tax rates and tax regimes may be changed by only nationwide referendum.
As reported, the Georgian president submitted the Economic Liberty Act to the parliament on October 6.