The new Law on Customs Tax came into effect on September 1

FROM THE REDACTION

The Minister of Economic Development of Georgia – Irakli Chogovadze met with the journalistic corps and spoke on the prospects and priorities that will arise from enabling of liberal customs tariffs.

Three days have passed since we adopted the new customs law. The customs tax was cancelled for up to 90% of goods, which is an important factor for further development of the Georgian economy. Taxes on industrial produce, raw materials and machinery were nullified. “I met with both local and foreign business circles. They have already expressed a serious interest concerning the development of logistic centers in Georgia. The matter concerns investments in the amount of tens of millions USD not only in Tbilisi, but also in Kutaisi, Poti and Batumi. The new customs law may cause reduction of incomes in the first months, though it will be insignificant for the state budget and will not impede financing of the projects planned in the country”, Irakli Chogovadze pointed out.
The Minister of Economic Development of Georgia believes that liberalization of customs tariffs will entail cheapening of imported goods on the market and make contraband of goods senseless, which will give an opportunity for a complete legalization of business. “Proceeding from the country’s geopolitical situation, it is important to develop the logistic sector in the region, which includes Armenia, Azerbaijan, as well as the Black Sea and the Caspian Sea countries. The zero customs tariff makes a real prospect for the development of the infrastructure and the banking sector, which will give a serious incentive to the progress of the Georgian economy”.