Government of Georgia – Appearance 2006

Tax Administration To Start Next Year

The work on establishment of a new effective tax administration at the Finance Ministry has begun already. By the initiative of the President of Georgia the integration of the financial police, tax and customs departments shall be completed in some months. The reform will promote the cooperation between the state and business sector and decriminalization of financial relations.

For this purpose on August 8 at the Finance Ministry the minister Alexi Alexishvili held the first working meeting with the heads of three departments and discussed the concrete terms and details of the reforming of the system.

At the meeting under the leadership of the finance minister was established a working group in composition of deputy ministers: Lasha Gotsiridze and Malkhaz Begiashvili, heads of three departments: Davit Kezerashvili, Kakha Baidurashvili and Zurab Antelidze; the work of group also involves the informational and analysis department of the Finance Ministry.

At the first working meeting was specified the concrete working schedule of the group under which:

• Until August 25 will be prepared the project for integration of databases of three departments which will further found the universal database of the new tax administration;
• Until September 11 will be developed the timed strategy of actions which will base integration of three structures in one institutional format;
• The strategy document will be agreed upon with the international donor-organizations.

The finance minister Alexi Alexishvili stated, that after this significant reform the state will coordinated, effective and transparent tax system where on the one hand the relations of an entrepreneur with the national fiscal services will be simplified and the culture of tax payments increased and on the other hand the administration by the state will be facilitated.

"In frames of the new tax administration will be improved the service of payers, will increased its effectiveness. A payer will feel that he has relations with a state authority where the bureaucracy is minimized. The theoretical possibility of corruption deals between the business and tax structures will be also minimized and at the same time the monitoring and responsibility for such deals will become stricter", - stated Alexi Alexishvili.

He also said that the legal and institutional integration of the departments does not mean optimization of the staff and its main goal is proposal for the payers the universal database, service and control.

The finance minister entrusted on the heads of three departments to provide their proposals and opinions about the new structure model as soon as possible.

In September the developed strategy will be submitted to the President and Government for consideration. The new tax administration will remain under subordination of the finance minister.

PR and Communications Department of the Ministry of Finance of Georgia