Tax and Customs Law Will Be Separated
10 October, 2013
Tax and Customs Law Will Be Separated
The tax and customs codes integrated into a single one four years ago will be separated again in order to make things more transparent and customs clearance procedures clearer to business.
The initiative came from Minister of Finances Nodar Khaduri early this month. A working group is already created at Ministry of Finances of Georgia that will be coordinating the process. According to Khaduri, two key factors prompt the changes.
They aim to restrict the personal power of Minister of
Finances who in compliance with the active law is mandated to issue certain orders at his discretion at a risk of considerable bias. To escape this temptation, the changes take the mandate of personal decision-making from the Minister and pass it to the legislative body in order to make all important decisions based on the law rather than personal taste. Another key point, compelling the division of the tax code into two independent tax and customs codes is the EU requirement aimed at harmonizing Georgian legislation with the EU pattern that suggests separate customs legislation.
“As for the conceptual part of the legislation division, key principles are not outlined as yet but the issue will be open to public discussions,” Khatuna Ivanishvili, a spokesperson of Finance Ministry, told Georgian Journal.
The sector pundits refrain to make comments until key points of the upcoming changes will be outlined but they say that the important thing is to simplify, not complicate the current procedures for the entrepreneurs. Works on integrated tax and customs codes was initiated by the liberally disposed former authorities in 2006. However, the united code entered into effect in 2011. The initiators of the united code believed it made things simpler and eased life of businessmen. Yet the customs pundits complained that after integration of the two codes, the legislation became eclectic and customs procedures were often interpreted less thoroughly while a significant part of information was dismissed to make the code smaller. Moreover, customs-related paragraphs were disseminated throughout the code unsystematically. All these continuously prayed at the slim time margin of importers and entrepreneurs struggling to realize how to handle particular procedures.
“As a matter of fact, I welcome the initiative to restrict the clout of the Minister and give a broader mandate to the Parliament,” Bondo Bolkvadze, a customs analyst, said in the interview to GJ. “I also approve of the idea of separating the customs and tax laws because it would make things clearer for businesses, even though most developed countries also employ the unified code. Someone decided years ago that customs code should not be more than twenty pages and puzzled the businesses because the information is scattered here and there in the tax code.”
According to Irakli Lekvinadze, an economic analyst, it does not matter much whether or not the customs and tax codes will be separated or not if major principles will be simple and liberal. “The crucial thing is to retain the currently operational one-stop-window principle of customs clearance that is very effective. Decisive factor of efficiency of customs and tax legislation is their principles, not their form,” he said.
At the moment, it is not clear when the separated codes will be enacted. MoF cannot provide even a tentative timetable. Ivanishvili says that the process will be most likely accelerated after the presidential elections scheduled by the end of this month.
Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
19.02.2019
20.02.2019
USD
1
USD
2.6404
2.6498
EUR
1
EUR
2.9908
2.9977
GBP
1
GBP
3.4130
3.4246
RUB
100
RUB
3.9898
4.0023
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6498
EUR
1
EUR
2.9977
GBP
1
GBP
3.4246
RUB
100
RUB
4.0023