Kharatishvili Zurab » Taxation

In your opinion, what kind of tax system is reasonable for Georgia and according to which principle should income tax be determined?

In my view, that the tax system needs some modification. Income tax must be cancelled or left on a symbolic level. Value added tax can not be affected yet, but we will have to think about its reduction.

As for the income tax, the rate (20 %) does not have to be changed , but it is the the rules of calculation that must be changed. I mean, that not all income should be taxed, but the part, that will be remained after the deduction of certain expenses. These expenses include: health insurance of the family members, children's education costs, mortgage loan interest and the amount transferred in the pension / social fund. This approach means that everyone, who will be willing to take advantage of these benefits , must fill out the income statement. To say shortly, the tax payer must be offered two alternatives – if he completes the income statement on a regular basis, he will be able to use the stated privileges, but if he does not want to fill in a declaration of his income, his income will be taxed on a full -time basis.

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