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Gov’t Announced Conditions of the Tax Amnesty for the Construction Business

Construction projects that have been stopped because of the war and the global crisis in 2008 will be exempt from taxes and penalties only if they are resumed and completed until 2018 – it was stated by the Minister of Finance of Georgia Nodar Khaduri.

“We have worked very hard, including with the Ministry of Economy, the Association of Developers, Tbilisi City Hall, and already submitted to Parliament the relevant document. Exemptions apply only to the payment of VAT, but only if the construction is  resumed, and the projects are completed within 3 years, no later than 2018. It will be good if the government asks Parliament to pass the law on an expedited basis, “- said the Minister.

The tax amnesty will help developers save about GEL 200 million.

According to Tornike Abuladze, President of the Association of Developers and Director of “Arci”, the government’s decision was initiated by the Association.

“We worked  on this subject with the Ministries of Economy and Finance for  a few days. This is a very important step that will enable construction companies to resume projects, and will provide apartments to citizens who have already paid for them and for many years have been waiting  for the completion of projects. “Arci” will save GEL 2 million, “- he notes.

According to the founder of the construction company “Center Point” Maya Rcheushvili, the government’s decision will be a great help for businesses.

“When the crisis began,  cash contributions from customers decreased to 20%, respectively, we had to continue construction  on our  money, and then we had to finance and conserve facilities. Now we will have the opportunity to direct the released amount for the resumption of construction work. We are talking about GEL 75 million.

In  her words, the construction business faces  2 problems – debt to the state and debts to banks.

“Thanks to the Government’s decision, now we do not have debts to the state. Now it is necessary to negotiate with the banks, and we hope that they will go to debt restructuring. In the end, the banks themselves are interested in the  resumption of  projects, their completion in order we to be able to pay all the debts,”-  Maya Rcheushvili adds.