Representatives of Georgian business applied to the Minister of Finance with several initiatives. Business demands to change the VAT system. Under the current legislation, if the turnover of the company exceeds GEL 100 thousand, theentrepreneur pays a turnover tax of 18% in the form of VAT.
Upon the initiative of a representative of “Dio” hotel situated in Nunisi, the regional tourist enterprises which turnover is more than GEL 100 thousand andpaying VAT, should be exempt from VAT while alower limit of GEL 100 thousand should be increased to GEL 200 thousand.
“Maknatuna” founder Gia Gumberidze explains to “Commersant” that not a full amount of any business with a turnover of above GEL 100 but a subsequent accumulated turnover of GEL 100 000 should be taxed.
Gumberidze accounts it for the fact that small enterprises, whose turnover is not too much more than GEL 100 thousand, are forced to evade taxes while if the initiative is carried out, they will not be able to hide the money.
The abovementioned initiative was proposed by the businessmen at a meeting with Finance Minister. For his part, Minister of Finance Nodar Khaduri has not responded to the idea yet.
The Minister proposed the representatives of business to hold regular thematic meetings to consider the problems in one context.