About Civil.ge
Eng | Geo | Rus
Last updated: 13:26 - 21 Feb.'18
RSS
Mobile
Twitter
Facebook
Revised 'Economic Liberty Act' Passed with Final Reading
Civil Georgia, Tbilisi / 1 Jul.'11 / 17:18

The Parliament passed on July 1 draft law known as Economic Liberty Act with its third and final hearing providing escape clause to a constitutional amendment subjecting tax increase to a referendum.

In December, 2010 the Parliament passed the constitutional amendment requiring a referendum in case the government decides to increase taxes (except of excise and local taxes). But unlike initial draft, the final version contained a reservation according to which a separate, organic law should define those cases in which the government will still be able to increase taxes without calling a referendum.

The draft of organic law, endorsed with final reading, regulates that constitutional amendment by saying that the government will have the right “to temporarily increase” taxes without calling a referendum, but in that case increased tax should be in force for no more than three years.

According to the same law, which will go into force from late 2013, government spending is not permitted to exceed 30% of GDP, while the budget deficit is capped at 3% and public debt at 60%.

However, escape clause is envisaged here too. In particular, the draft reserves a scenario wherein figures in proposed state budget may not be in line with 30% limit on expenditure to GDP ratio and 3% budget deficit ceiling; but in that case the government should propose budgetary parameters envisaging return to set limitations within two years.

Revised Economic Liberty Act does not envisage some of the provisions, which originally were part of the proposal. In October, 2009, when President Saakashvili first voiced the initiative of Liberty Act, it also involved proposal to ban setting up of additional new regulatory agencies. It also was proposing ban on introduction of additional new licenses and permits. None of these proposals are part of the final text approved by the Parliament. 

Latest News
21 Feb.'18 13:26
Foreign Minister Warns Against Visa-Waiver Abuse
Over 220,000 Georgian citizens have enjoyed visa free travel to the Schengen area.
20 Feb.'18 15:19
The Weekly Tripwire - Issue 27
Civil.ge’s news digest covering developments in Abkhazia and Tskhinvali Region/South Ossetia.
19 Feb.'18 17:53
Tbilisi City Court Releases Turkish Citizen on Bail
Mustafa Emre Çabuk has been released pending final court decision on his extradition to Turkey.
19 Feb.'18 15:49
CSOs, Media Outlets Call for Parliamentary Probe into Mukhtarli Case
The joint statement has been signed by 35 local civil society organizations and media outlets.
19 Feb.'18 14:09
Georgian PM Meets World Leaders in Munich
Prime Minister Giorgi Kvirikashvili attended the Munich Security Conference on February 16-18.
16 Feb.'18 16:58
Government Unveils New Tax Initiative for Small Businesses
According to the initiative, tax rates for small businesses will decrease fivefold.
16 Feb.'18 15:06
Georgian Economy Minister Visits Azerbaijan
Kumsishvili attended the Fourth Ministerial Meeting of Southern Gas Corridor Advisory Council. 
15 Feb.'18 17:39
Independent Agency to Investigate Crimes Committed by Law Enforcement Officers
The agency will be established in 2019, and will replace the Office of Personal Data Protection Inspector.
15 Feb.'18 11:53
Parliament Renews Discussions on Controversial Amendments to Broadcasting Law
New regulations expanding GPB’s powers triggered controversy within the ruling Georgian Dream party.
14 Feb.'18 15:57
U.S. Intelligence on Georgia’s Foreign Threats, Domestic Politics
Office of the Director of National Intelligence published its Worldwide Threat Assessment report for 2018.

About Civil Georgia
Civil.Ge © 2001-2018, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
104