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Businessmen Prefer Banking Privileges to Abolishing Income Tax

Businessmen prefer the introduction of bank concessions to the abolishing   income tax announced by the government.

As reported,  some investors engaged in medical and agriculture spheres will be exempt from paying  income tax. The changes are under development.

Whether  this change will be a real help for businesses and what do businessmen think about this initiative?

Medical business takes the initiative of concessional lending.

According to Givi Chikobava,  Director at “Guidmed” clinic, for example,  the medical field’s profits are not  large, but  if remain, they are used for  reinvestment purposes. As a result, the medical business has not paid income tax for years because of law profits, as business uses these funds to upgrade the medical equipment.

Chikobava notes that it will be good if the government thinks about granting  preferential loans even  to medical field, otherwise  medical business cannot be developed.

In Chikobava’s words,  the company  has suffered from the lari’s  sharp devaluation, as  took  a loan in dollars. In Chikobava’s opinion,   the government should develop a mechanism to resolve this  problem.

According to Nina Petrova-Dzneladze, a founder of the greenhouse agriculture “Nectar”, the implementation of this initiative will be really a great help for businesses but it would be better if the government helped in resolving problems related to loans.

She notes that  many entrepreneurs have  taken out loans in dollars and now they are facing  serious problems.

Petrova-Dzneladze says  that the National Bank’s initiative to restructure bank loans has not affected the company because it does not apply to limited liability companies (LLCs) and the companies involved in the preferential agro-credit  program.