2022-12-05
Irakli Garibashvili, Prime Minister of Georgia stated at the Executive Government Meeting that jobs created in Q3 of 2022 increased by 45 000 and reached 723 000, which is a record-high indicator.
"I wish to move to another agenda item of the meeting and state at the outset that the National Statistics Office of Georgia (GeoStat) released its most recent data a few days ago. Economic growth indicator is reported to have reached 10% in January-October and I also wish to note that gross revenues increased by 17% in the private sector, thus reaching 47 BLN GEL. It is the outcome of our prudent policies! I wish to call on businesses again, as they know best that no revenues may increase in a country without stability and peace, no employment and new jobs are created without stability and peace. Country could have been turned into a war zone. In addition, you may well be aware that the number of jobs has increased and employment opportunities have reached a record-high indicator. Private sector created 45 000 new jobs in Q3 and reached 723 000, which is a truly record-high number. It may be said that this indicator has substantially exceeded the pre-pandemic one" noted the Prime Minister of Georgia.
According to the Head of Government of Georgia, commercial banks and the financial sector at large will no longer transition to a so-called Estonian Model of Corporate Income Tax (CIT). Current system will be maintained in their case and a rate of 15% will apply to them instead of 20%.
The Prime Minister of Georgia clarified that net profit of commercial banks will reach 2 BLN GEL by the end of the current year, which would make the intention unjustified.
Irakli Garibashvili noted that with this decision the Government of Georgia expects additional revenues to the State Budget from 2024.
"I wish to say very briefly that we had a discussion within the Economic Team and I wish to share information on several key decisions with our society, including businesses and banking sector. First of all, let me start by saying that we made the following decision applicable to the financial sector: commercial banks and the financial sector will no longer transition to the so-called Estonian Model of Corporate Income Tax (CIT). Current system will remain and provision in the legislation of the country about the Estonian Model will be declared void. We are submitting this legislative initiative to the Parliament of Georgia, because it is simply unjustified to let the banks retain this much profit. This year they will be generating 2 BLN GEL. By the end of the year their net profit will reach 2 BLN GEL. In addition, we will be submitting another legislative initiative to the Parliament of Georgia to reduce the CIT rate for banks from 20% to 15%. We expect to mobilize additional tax revenues to the State Budget from 2024. CIT will be levied from commercial banks on the grounds of the International Financial Reporting Standards (IFRS), which did not apply to them so far. Of course, we appreciate the role of banks in the economic growth of the country. It is utterly important that we have a very advanced banking system with shares of two being traded at the London Stock Exchange. We will, of course, continue supporting them in future. Nevertheless, these are the minor adjustments we have initiated to the legislation of the country" noted Irakli Garibashvili.
The Prime Minister of Georgia also noted that tax incentives will be continued for another 3 years till 2026 for individuals and cooperatives engaged in agriculture.
Irakli Garibashvili noted that a Penitentiary Code has been included as an agenda item for the Executive Government Meeting today. "Of course, we will be supporting this Code and I hope that Parliament will share our spirit in supporting this legislative initiative. A number of concessions are made in it. Two significant Codes are proposed for discussion at the Executive Government Meeting today. First one is a Penitentiary Code and I wish to thank Rati [Minister of Justice of Georgia] for it" noted Irakli Garibashvili, Prime Minister of Georgia at the Executive Government Meeting today.
The Head of Government of Georgia reminded the general public about the challenges existing in the penitentiary system till 2012 and comparison with the current conditions.
"I wish to one again and very briefly assess the reforms carried out in recent years within the penitentiary system of the country. You may well remember what we inherited. Particularly horrendous challenges existed in this system: inmates used to be tortured, slaughtered, raped and other atrocities were happening in cells. However, when we came to power in 2012, we made a real breakthrough and now the system is oriented towards human health. For instance, if we compare occupancy in cells, let me say that 25-30 inmates used to be placed in a cell of 20 sq.m. 10 years ago. Imagine this! It is equal to torture and it was still augmented by the atrocities happening there back then: torture, suffering, beating, raping, man slaughter, etc." noted the Prime Minister of Georgia.
According to him, the new Code involves a number of concessions, including those for the staff of the penitentiary service.
"Inmates may regularly exercise nowadays. They may engage in sports festivals. For instance, with an initiative of Rati [Minister of Justice of Georgia], inmates may gain degree qualifications remotely via digital platforms. We created libraries at prisons and a lot of good things were done. Prior to him, when Thea was the Minister of Justice and even prior to her a lot of good ministers were doing this great deeds and now this initiative has been made by the current minister. We will be supporting this new Code, of course. I hope that Parliament will share our spirit by supporting it. A number of concessions are promulgated in it, including those for the staff of the penitentiary service. For instance, the scope of officials with special ranks is being extended. Apart from their position- and rank-related salary supplements, they will be getting additional pay for the number of years in service. Of course, this is very important for them" added the Prime Minister of Georgia.
The Head of Government noted that the Ministry of Economy and Sustainable Development developed a Draft Law, according to which the work of sailors will be more rewarded and eased.
We have a very good initiative for sailors. Levan's institution [Ministry of Economy and Sustainable Development] designed the Draft Law. Work of sailors will be supported with it by the Government of Georgia. We carried out a lot of sound reforms in recent years for them and now with this legislative initiative will be rewarding and easing their work further. It was announced by Irakli Garibashvili, Prime Minister of Georgia at the Executive Government Meeting today.
According to him, documents issued by Georgia will be valid for use in 73 marine jurisdictions of the world, including 20 EU Member States that will be recognizing the certificates issued by Georgia to its sailors.
"I wish to remind everyone hereby that documents issued by Georgia will be valid for use in 73 marine jurisdictions. Out of them 20 EU Member States will be recognizing the certificates and documents issued by Georgia to its sailors" noted the Prime Minister of Georgia.
As for the citrus season, I wish to say very briefly that Otar Shamugia [Minister of Environmental Protection and Agriculture of Georgia] was visiting Adjara to get personally exposed to the local situation. A Task Force has been established for coordination. According to our assumptions, almost 45 000 tons of citrus is expected as yield this year. It was announced by Irakli Garibashvili, Prime Minister of Georgia at the Executive Government Meeting today.
According to the Head of Government of Georgia, mandarin oranges will be admitted by over 20 processing plants, while the sub-standard crop will be subsidized.
"As for the citrus season, I wish to say very briefly that Otar Shamugia [Minister of Environmental Protection and Agriculture of Georgia] was visiting Adjara to get personally exposed to the local situation. A Task Force has been established for coordination. According to our assumptions, almost 45 000 tons of citrus is expected as yield this year. Mandarin oranges will be admitted by over 20 processing plants, while the sub-standard crop will be subsidized" stated the Head of Government of Georgia.
Irakli Garibashvili, Prime Minister of Georgia noted at the Executive Government Meeting today that "almost 300 climate and spa resorts and sites exist in Georgia, majority of which simply do not operate at present. Over 100 have been studied in terms of their development potential and will be offered for sale".
According to the Prime Minister of Georgia, it is the aim and goal of the Government to find the best use of their potential.
Irakli Garibashvili noted that the Government has earmarked at least 200 MLN GEL in the State Budget of the country towards this end and full rehabilitation-upgrade of the most popular spa resorts will be launched.
"I wish to say a few words about the Spa Resort Development Plan as well. We are actively working towards this end. Levan [Minister of Economy and Sustainable Development of Georgia], we should probably make a separate presentation on this topic and invite businesses to attend and to share information to the general public about our plans towards this end. Let me still say very briefly that as per our decision, the current stance of over 100 climate and spa resorts has been studied and their development potential has been worked on. Overall, it should be noted that almost 300 climate and spa resorts and sites exist in the country, majority of which simply do not operate. They have a huge potential. Our aim is to find the best use of their potential. We will be having a more detailed and separate presentation shortly. We should put them out, including the spas, for sale. Prior to that, let me tell you that we have already earmarked at least 200 MLN GEL in the State Budget towards this end. We will be launching a full rehabilitation and upgrade of the most popular ones: Borkomi, Bakuriani, Kazbegi, Mestia, Tskaltubo, Batumi and Kutaisi. Also, we plan to carry out very interesting projects towards Barisakho-Roshki, Manglisi-Sioni and Omalo" noted the Prime Minister of Georgia.
According to Irakli Garibashvili, construction of a new cable lift is planned in Gudauri with a throughput of 1800 skiers per hour, while the length of the cable will be 2800 meters.
"We plan to construct a new cable lift is planned in Gudauri with a throughput of 1800 skiers per hour, while the length of the actual cable will be 2800 meters. We will also be installing a snowfall system at two ski tracks in Gudauri, which will add a greater comfort to our holidaymakers, our citizens at high season, when natural snow will not be sufficient. Artificial snowfall system will help and our citizens and not only - tourists as well - will enjoy more comfortable conditions when skiing" noted Irakli Garibashvili.
As the Prime Minister of Georgia also noted at the Executive Government Meeting today, full rehabilitation will be carried out at the State Professional Opera and Ballet Theatre of Kutaisi.
"We are launching a rehabilitation project at Kutaisi Opera House. Thea [Minister of Culture, Sports and Youth of Georgia] was visiting Kutaisi. We started work on this project last year. It is conceptualized now and full rehabilitation will be carried out at the State Professional Opera and Ballet Theatre of Kutaisi with a budget of almost 21 MLN GEL" concluded Irakli Garibashvili, Prime Minister of Georgia.
Press Service of the Government Administration