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Gov’t Exempted from VAT Unfinished Construction Projects

The Georgian government has decided to release from the financial obligations to the state companies that started building projects until 2008, but failed to bring them to the end.

The corresponding decision was announced by Prime Minister Irakli Garibashvili.

According to him, construction companies are still in a serious condition because of debts accumulated during this period that  hinders their development.

“The tightening of bank lending and a decline in demand for real estate posed serious challenges to the construction sector, respectively, companies accumulated large debt to the state. These debts still hang heavy on the shoulders of the business, and hinder the development of not only these particular companies, but also the construction sector in general. Therefore, we decided on the exemption from VAT of companies that had  started their projects until August of 2008 “- said the head of government.

In his words, this decision will contribute to the revival of the construction sector and its further development.

“The resumption of the suspended projects will be of great importance not only in terms of economic activity, but also contribute to the city improvement ,” – Irakli Garibashvili says.