PM Bakhtadze Meets Business Association Representatives

The Prime Minister of Georgia, Mamuka Bakhtadze had a meeting with the representatives of the Business Association of Georgia (BAG) where the parties discussed the implemented reforms and planned changes in the business sector of the country.

According to the PM, electronic residency practice will be established in Georgia, which will enable citizens of 34 countries to incorporate companies via e-registration, open bank accounts online and fully benefit of the concessional tax regime existing in Georgia.

“E-residency practice will give unique opportunity to Georgia to turn into a Financial Hub of the entire region," the PM told businessmen, adding the practice will be launched from January 1, 2019.

Bakhtadze explained that every public institution will be instructed accordingly and respective package of legislative amendments will be submitted to the Parliament of Georgia. According to him, the tangible results can be achieved if the private sector and state cooperation is at a high level.

"This is indeed a unique initiative, which will be associated with quite significant challenges and investments during introduction and management, though we have taken all that into account,” the PM addressed BAG members, adding that before the end of the year, he will introduce several similar initiatives to businessmen.

Bakhtadze also called for more active engagement of the Business Association of Georgia in the formation of the new Tax and Customs Code of the country.

“We have announced and already presented a new Draft Customs Code, which is based on the idea of developing a concept of e-customs. We have done it on an open platform and I wish to call for your active engagement,” he told the meeting participants.

In addition, Bakhtadze noted both Tax and Customs Codes need to be an outcome and output of most effective interaction of the public and private sectors.

“We also announced that existing Tax Code will be amended by all means and it will also be based on an open platform... I remember that BAG has a very specific comments and suggestions towards the current edition and hence your contribution in this effort is utterly important,” he added.

Moreover, the PM admitted that the most acute economic problem the country faces today is poverty, adding it cannot be solved unless the SME's share in GDP increases.

“We will take very principled steps in this direction. Some have already been announced, and very principled decisions will be made in the foreseeable future further to encourage SMEs," he added.

According to Bakhtadze, Georgia's economy must rely on the private sector in its development, adding the Government is committed to promoting business activities in Georgia.

By Thea Morrison

Photo source: PM’s Press Office