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PM Candidate: We will Free Representative Companies from Taxes

Mamuka Bakhtadze, a nominee for the position of Prime Minister, has proposed to free representative companies from taxes to attract major international companies to the country. As a result, domestic business companies will get the chance to develop their directions.

“As reported, in 2017 Georgia recorded a historical maximum of an inflow of foreign direct investments (FDI). This is an excellent result. At the same time, analysis of structure of FDI inflows suggests that it should embrace as more components of high-technology investments as possible. We have to perform serious job in this direction. Georgia has a positive international reputation in the eye of investors, but we have to enhance our efforts that the ratio of high-technology investments considerably increase in total FDI. We have prepared due economic calculations on the mentioned issue too. High-technology sector gives higher results, compared to traditional sectors. Therefore, this issue should become a government priority.

Experience of successful countries proves, for example Estonia or Finland, that foreign high-technology companies play significant role in their economy. We need similar companies. The questions is why a representative company may enter the small market. We have comprehensively mulled over this issue and we plan to submit due initiatives to the Parliament to introduce the term of Representation and we will fully exempt them from taxes.

I believe after enforcement of this tax initiative we will draw major representative companies to Georgia and we will create a good precondition for startupers to set communications with them”, Bakhtadze said.
At the meeting held in TechnoPark, Bakhtadze also talked about other opportunities for growing liquidity and noted that the Government will also join this process.

“As to other aspect of liquidity, this is the so-called Angel Investors, because this is vitally important. If we have 250-300 successful startup organizations, this will create such eco system that will raise interest of the most successful and famous Angel Investors. In this case the Government should also take bold steps.

As to the third component of liquidity, it refers to state organizations. We will have ambitious plan and government structures will increase demand for purchase of digital solutions, services and so on. As a result, liquidity will considerably increase on the market”, Bakhtadze told startupers.