Minister: This Year Will End with at Least -4% for Our Economy
Based on the most conservative forecasts, this year will end at least with -4% for our economy, Minister of Economy and Sustainable Development Natia Turnava said at the presentation of the anti-crisis economic plan on Friday.
The Minister noted that as a result of the government's effective policy and anti-crisis plan, in 2021 the Georgian economy growth may amount to 4%.
She emphasized that at least GEL 600 million will be returned to the country’s economy through VAT refund mechanisms for businesses.
“We should not forget the innovation related to automated VAT refund for businesses. This mechanism will be greatly simplified and it is an opportunity to invest an additional resource of at least GEL 600 million in the economy. It will be very useful for our businesses by the time they start the road to recovery, and you know that we have already started easing some restrictions very carefully," she said.
During the presentation, the Minister spoke about the specific steps aiming at supporting the business affected by the coronavirus crisis and noted that the benefits in terms of income tax will help businesses to keep jobs.
In this regard, salaries up to 1500 GEL will have a benefit in paying income tax, and up to 750 GEL - will be fully exempt from income tax.
"This is an opportunity and a chance for businesses offered by the government when their incomes are reduced and they have to pay salaries. By taking this measure, we are doing our best to support the business in order to keep the employees,” she noted.
By Ana Dumbadze