About Civil.ge
Eng | Geo | Rus
Last updated: 20:46 - 22 Aug.'14
 
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
22 Aug.'14 20:46
Dariali Landslide Cleanup Underway
It will take at least two weeks to restore road linking Georgia with Russia, officials say.
22 Aug.'14 19:14
U.S. Vice President Speaks by Phone with Georgian PM
Bilateral ties, NATO integration and Georgia’s efforts to attract investments discussed, White House said.
22 Aug.'14 15:44
Sokhumi Asks for Recognition from Belarus, Kazakhstan
Breakaway region says it wants to contribute to integration process within Eurasian Union.
22 Aug.'14 11:35
Georgian MFA 'Concerned over Escalation' of Hostilities in Eastern Ukraine
A shell explosion damaged Georgian consulate in separatist-held city of Donetsk.
22 Aug.'14 10:53
Georgian PM Speaks by Phone with German Chancellor
Situation in the region and upcoming NATO summit discussed, according to Georgian PM’s office.
21 Aug.'14 17:44
Armenian, Georgian PMs Meet in Yerevan
PMs reiterated “friendly” relations between the two countries
21 Aug.'14 15:16
Photos: Landslide in Dariali Gorge
Landslide hit Dariali gorge, close to the Russian border, for the second time in last three months.
21 Aug.'14 11:28
Landslide Hits Dariali Gorge
Two people are missing after the landslide close to the Russian border.
20 Aug.'14 22:05
Prosecutors Probe Senior UNM MP Bakradze's 'Undeclared Bank Account'
It said origin of over 276,000 British pounds on those bank accounts, would also be examined.
20 Aug.'14 21:57
Georgian PM Speaks by Phone with French President
PM’s office said developments in the region and upcoming NATO summit was discussed.

About Civil Georgia
Civil.Ge © 2001-2013, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
52