PM on Pompeo's Visit, Runoff Voting, Automatic VAT Return Reform

"We agreed on further deepening of our countries' strategic partnership based on shared values, such as freedom, democracy, and common geostrategic interests," Georgian Prime Minister Giorgi Gakharia assessed US Secretary of State Michel Pompeo's recent visit, during today's Government meeting.

The Secretary of State, on behalf of the American people and Government, reassured the Georgian people of firm support for the country's territorial integrity and sovereignty, Euro-Atlantic development, and further deepening of trade and economic relations, the Prime Minister emphasized.

"The visit by the Secretary of State of the United States, our strategic partner, concluded yesterday-a visit of paramount importance at a crucial moment. The key issues discussed during the visit included, firstly, further deepening of the strategic partnership between our nations, also regional security, and the importance of US-Georgia cooperation in the regional context, as well as Georgia's role in the ongoing regional developments, of course. Most importantly, the Secretary of State, on behalf of the American people and Government, reassured the Georgian people of firm support for the country's territorial integrity and sovereignty, and Euro-Atlantic development, and further deepening of trade and economic relations. Of course, the importance of Georgia's steady development and empowerment of institutions was emphasized. Ultimately, we agreed on further deepening our countries' strategic partnership based on shared values, such as freedom, democracy, and common geostrategic interests. It was a crucially important visit once again demonstrating Georgia's importance to our strategic partner, and the significance of Georgia's further development and Euro-Atlantic course. All that reiterates the Government's successful policy for the country's European and Euro-Atlantic development," Giorgi Gakharia said.

The Head of Government also commented on the upcoming runoff parliamentary elections scheduled in 17 districts for November 21.

The Prime Minister noted that these elections will be of paramount importance for rapidly returning the country into a normal legal framework and formal legal and political platforms.

"Georgian citizens, back when they voted on October 31, amid the pandemic, unanimously supported 9 parties and their entry into Parliament. They voted for these political parties to join forces and engage effectively in the battle against the country's challenges, within the purview of their mandates and, more importantly, responsibly. This is what matters, and I am confident that each of these political unions, each MP, shares this responsibility and will act so as to honor Georgian voters and citizens, and the expectations and responsibilities which Georgian citizens have distributed as they see fit. We must understand the crucial importance of the country's further steady development and stable political process amid the challenges facing it, such as the pandemic, recession, and regional challenges," the Prime Minister said.

During today's meeting, the Head of Government also discussed the latest VAT return reform enabling almost 150,000 companies to reclaim VAT automatically, virtually instantaneously.

Gakharia noted that this means that, every year, about a billion GEL will return to business without any difficulties, instantaneously, a reform unparalleled in the country in decades.

The Prime Minister thanked the Finance Ministry for implementing this systemic reform.

"Alongside the fight against COVID-19, we also have the vitally important task of dealing with the recession. In this regard, we, at the very beginning of the first wave, joined forces with the Finance Ministry and started working on the automatic VAT return, a reform of profound significance, something that no previous government has been able to accomplish. This reform implies that almost 150,000 companies will be able to reclaim VAT automatically, virtually instantaneously, and that, every year, about a billion GEL will return to business without any difficulties, instantaneously, a reform unparalleled in the country in decades, one designed to support the development of medium-sized business and to keep jobs. Especially valuable is this reform in light of the ongoing economic crisis, and it is of special importance for keeping potential alive for rapid economic recovery. I would like to thank the Finance Ministry for implementing this key systemic reform," Gakharia said.