PARLIAMENT MISSED TAX CODE CHANGES
Sophico Sichinava
It’s an axiom that construction of statehood and nation’s survival depend on economy, or the production, which, itself, relates to existance of natural conditions those are enough valuable in Georgia, thanks to god.
As to labour resources of our country, everything’s OK with that, as Georgian intelligence is well known on the market. For establishing the perfect market, Georgia is given a chance to be surrounded with prospective resources, such as the Russian, Turkish, and Trans-Caucasian markets. Important is also the question of tech-park, which is in big trouble at the moment. But, most significant among all is the legislative basis: laws and regulating acts, right what originates conditions for production. Tech-park is the investment that won’t form without the real and acceptable tax climate. Thereof, no employment of labour and geographical conditions will exist. It appears that the fiscal policy and tax code are the initial substances. It may sound didactic, but we have no intention to teach anyone. It’s an axiom simply. In the first instance, tax code should be relied on strategic plan of national economy development, or we’d consider of which kind of state and its economy do we want to form. We have to define what we can give to the world and vice versa. If there’s no strategy of national economy, enacted tax code will be totally unacceptable. Because of influence by different lobby groups, code will shift permanently, which is inadmissible. In such conditions, it’s impossible to follow the course of stable development of economy. Seems, all, including position, opposition, partial, and non-partials have agreed that above mentioned is an axiom and needs no urgency, acceding also the fact that existing tax code is unacceptable and has to be changed without fail. Analyzing gained experience is much enough to acknowledge the partial changes are inefficient as others. Harder tax burden becomes more deficient the fiscal effect turns.
There have been number of discussions about tax code. So did we, presenting various publications and alternative versions of code suggested by different political parties. State Minister has established the special commission, but unfortunately, commission works non-transparently, with no participation of scientists and professional stuff in it. Half of previous year was dedicated to suggestion of various alternatives for tax code, which finally finished with unconsidered and quick decisions those have no context and ideology. In winter government has promoted the package of changes that has been ratified by Parliament at the closest sessions.
Parliament had accepted the new charges on cigarette taxation. With those charges government encouraged employers in cigarette business. It seemed that government was supporting business, but, at the same time, it increased the fixed tax on water resources with 0.01 GEL per liter. Fiscal effect of this is still uncertain.
In December 2000, Parliament has announced the “tax release” for toothpaste, chewing gum, cosmetics and hygienic commodities. Did they count a loss of state budget doing that? Alternatively, which of strategic plans does stipulate decisions like those? Interesting is that the most of Parliamentarians are not ever familiar with the date of balloting. This is what we’ve mentioned above: lobby groups are going on influencing the secret changes in tax code, the same is expectable at spring sessions. The thing is about twelve different taxes on production of rural products changed with corporate tax. Is Parliament going to discuss that, or not, spring sessions will show. For now, tax code remains at the heart of hot allegations. Seems like, someone prefers the existence of magic circle, or above-mentioned unprofessionalism does its best for this. How long?