New tax preferences for small business sector will come into force on July 1. The government’s initiative calls for cutting the turnover tax for small business 5 times. As a result, companies with 500 000 GEL turnover will move to the category of small business.
Economic experts have approved the mentioned initiatives. Expert Levan Kalandadze hails the initiative, but suggests the Government to lift the VAT top margin for higher effectiveness.
“I suppose that VAT top margin will be 100 000 GEL again. This signifies small entrepreneurs with more than 100 000 GEL will pay VAT anyway. To make this model more perfect and efficient, the Authorities should not only expand the circle of companies with the small business status, but also to raise VAT top margin to 500 000 GEL. As a result, small entrepreneurs with about 500 000 GEL turnover will enjoy the same preferences as enterprises with about 100 000 GEL turnover”, Levan Kalandadze said.