Who is a business killer in georgia

FROM THE REDACTION

Terrible articles of Code of Administrative Violations of Georgia ruin business and create a discriminating style.

A lot has been done for a business freedom in Georgia and current estimation in the world rating from this point of view is acceptable. There is a sharp discussion round these postulates – what makes doing business in Georgia so free while we face so many barriers in practice. On the other hand one thing is a fact: a person may register a company with minimal capital and minimal bureaucracy while registering in a few days. Number of licenses and permissions has annulled, the list of taxes is also shorter. Still there are huge barriers.
Business barriers in Georgia may be divided into several groups:
The first group – Business killers – relationship with communication systems.
1) You have started a business and have registered your company; now you would like to equip your commercial place with electricity network. For that you should pay about USD 1000-15000. It’s the same as if you were asked a fee for entering a supermarket of a huge trade centre. Telasi is a shelf with the following goods: electricity wires, electricity controlling and supplying. Why am I, a future customer, to pay for inclusion in it? It is unimaginable!!! It is alarming!!!
– I do not have an agreement with a supplier on quality and volume. It means that I don’t have right to move or change something. It means that I am deprived of any right. Telasi may provide 43 hertz instead of 50, or 200 kw instead of 220 kw. Voltage may suddenly drop and expensive technologies may come out of order. Moreover, let’s say that I have started a technological process, process oven and suddenly Telasi stopped providing electricity. The material in oven are damaged, I need to throw them out. Is Telasi responsible for that?
– The situation is the same with gas system. You need to make their companies certain draft and then order some technical scheme, you pay for that and then you pay for inclusion in a gas system.
– No contracts. You have no idea on the type of gas, on its quality, on its kilocalorie, its pressure. it may provide low quality gas and increase your expenditures, like they did this winter and they are not responsible for it. Moreover, they bring you numerators that makes errors and yet, no one is responsible.
– The same is true with the water supply. Huge bureaucracy and long taxation procedures from 1000-150 000
– According to article 149 of general Code of Administrative Violations of Georgia, anyone who is included in the scheme without /// project pays a fine, even if she/he pays water fee. New numerators are added to it the price of which is Gel 600-1000
Situation is absolutely the same with telephone and internet systems. They greatly damage business in Georgia.
– Cargo transportation and logistic problems, especially international container, are quite interesting. Prices are really huge in this sphere. For instance, transportation of 20 ft. International container from China to Poti costs 1000 USD. From Poti to Tbilisi 1000 USD again! Can you see logic here? I can’t! Not a single operator or an agency is responsible for late delivery of cargo. We have witnessed how it took 3 month to deliver cargo from Germany or Finland.
The second business killer is a General Administrative Code. It may be said to be draconic. For instance let’s take article – 1461 throwing garbage in a street. A serious nonsense here – the city service that is responsible for cleaning writes minute itself. For example you have garbage and you have put it in a package and called a city service responsible for it to come and take it away. You are ready to pay them in case of necessity. In case your company has not concluded a contract with the above mentioned service, you have to pay a fine of 500 Gel according to the third item of the article 1461– administrative code. The second case is fined by 5000 Gel (29.12.2006 #4283). This opposes any market norm and is directed to creating monopoly of the service.
To put it short, you call to 09 and the give you the number of the service (for example Vake and Saburtalo region) 39 70 62. You phone and are given another number – 895 36 40 70; you call again a person comes (with a small auto that of course will not be able to take garbage away). You have no idea who he is. He looks at your garbage and tells you the price: 1 kbm 20 Gel. You agree to pay the mentioned amount after which the incognito person leaves and tells you that he will come back with a car to take garbage. Later you call him and he tells you that he will not be able to come due to certain problems. Inspector comes instead on the third day and writes minute (It is really exciting in the story that an inspector tells you your neighbor complained, called the hotline). They take minute to the court and a court without your presence makes decision and you are fined. Article 1461 implying 1000 Gel, if it happens again you have to pay 3000 Gel. Why were not you informed? Well, you are shown a dispatch send by people’s post and it couldn’t find you. Strange, contact information of your firm is in any directory you even have a huge billboard, anyway post couldn’t find you. Pay attention to the fact that you have 10 days for appealing, although the notice from the court was given to you after 3 months. Moreover, perhaps the space and garbage was not yours, still money is taken from you. Imagine a company with working capital of 1000- 2000 Gel, it is broke. Situation is even worse related to individuals. they are privileged to pay 200 Gel. It is a 5 month income of a pensioner and a whole month income of an average intelligent person. Despite the norm entered into force two years ago, garbage amount remains the same in Tbilisi, business suffers from this body. .
Moreover, the law is a legal atavism. For instance: chapter 12, article 153.
– Violation of trade rules by an entrepreneur. Can you imagine that you are fined by 8000 Gel and at the same time you have no idea what violation of trade rules means. I wonder who left it in the code. Anyway, it’s a fact, and it seriously hampers the development of business.
Here is another quite significant article 1541 – violation of rules defined by bread products maintenance system reorganization.’ Did you get what it is? Wasn’t it said that it’s a liberal economics and free market? If so, then what does the article imply on the basis of which a businessman is fined with about GEL 40 000? this is what makes doing business difficult and spoils rating.
The list of gaps in the code may be continued endlessly. Therefore it is necessary to create a new Code of Administrative Violations as soon as possible. It soul be important to attract donors and to create competent work group that together with lowers would include economists as well.