Business Association of Georgia meets with the Government Economic Team and the President of the National Bank

12 Apr '13

Representatives of member companies of Business Association of Georgia met with the Ministers of Economy and Finance and the President of the National Bank. The Meeting was organized by the Business Association of Georgia at the Hotel "Radisson", were the parties discussed ongoing economic, tax reforms and problems business is facing in the country.
At the meeting, the Ministry of Finance presented the draft amendments to be made to the Tax Code and a new tax policy vision. As Mr. Nodar Khaduri, Minister of Finance pointed out, "draft amendments to the Tax Code provides for the improvement of tax administration, further liberalization of sanctions, fostering charity, setting tax privileges for certain categories of tax payers, including disabled persons, correcting some substantive and editorial errors. It is of essential importance for the Government to listen to the business-related problems, cooperate with them and search for means of solving them". Minister of Finance noted that in the course of discussing the draft amendments to the Tax Code, limiting the powers of the Minister of Finance will also be considered. Specifically, the Minister will be deprived of his/her right to individually interpret the Tax Code, which will ensure that business operates in a more stable environment.
At the meeting business representatives also expressed their vast interest towards the vision of the Ministry of Economy with regards to certain issues of concern. Namely, participants discussed such problematic issues as the Labor Code and expected amendments to the Law on Competition, current situation in the construction industry and insurance sector, etc.
As Mr. Giorgi Kvirikashvili, Minister of Economy stated "the government shall hold as much business-related discussions as possible in an unofficial environment. We need to listen to the ongoing problems facing businesses for their immediate solution. I am confident that business representatives have a lot to say". While discussing the Labor Code amendments, Minister underlined that the Code remains to be a matter of concern. As the Minister noted "we will discuss this issue again. We will be engaged in reviewing it within the parliamentary committees in order to make every effort to improve the balance and to prevent enforcement of the kind of a Labor Code that would be damaging to the business environment. For instance, I agree with the most remarks put forward by business representatives; however I do not share some parts of them". 
Pertaining to the expected amendments to the Law on Competition, according to the Minister of Economy, these amendments are not aimed at oppressing already existing company (s) in the market; on the contrary, the purpose of these amendments is to foster development and enhancement of a competitive environment.
Mr. Giorgi KADAGIDZE, the President of the National Bank referred to the meeting as to a nice tradition and noted that meeting with businesses is vital, especially, "when the country is going through a difficult and crucial period of its development".
During the wrap-up of the meeting outcomes, Mr. Giorgi CHIRAKADZE, President of the Business Association of Georgia underlined the fact that business needs to be in regular and close communication with the government economic team to exchange arguments and information on built-up matters of concern. The latter will give an opportunity to the government and businesses to handle these problems by their joint efforts in a simplified manner and contribute more to the economic development.