About Civil.ge
Eng | Geo | Rus
Last updated: 19:08 - 27 Jul.'15
 
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
27 Jul.'15 19:08
Georgia in U.S. Report on Human Trafficking
Despite “making significant efforts”, the government “does not fully comply with minimum standards.”
27 Jul.'15 14:47
MEPs from Foreign Affairs Committee Sum Up Georgia Visit
Georgia should be granted EU visa waiver “in 2016, once the relevant criteria are fulfilled,” MEPs said.
27 Jul.'15 02:59
Tbilisi Hosts European Youth Olympic Festival
Opening ceremony of the largest sporting event ever hosted by Georgia was held at Meskhi Stadium.
25 Jul.'15 15:29
Bill on Prosecutor’s Office Reform Passed with First Reading
Bill introduces new rule of selecting and electing Chief Prosecutor for a non-renewable six-year term.
25 Jul.'15 14:52
MEPs from Foreign Affairs Committee Visit Georgia
The delegation arrived in Tbilisi after visiting Ukraine.
24 Jul.'15 23:49
Rival Draft Resolutions on Russia’s ‘Aggressive’ Moves Debated in Parliament
Parliament adopted GD-proposed text, voting down the draft tabled by opposition UNM party.
24 Jul.'15 21:04
After Electricity Rate Hike, Govt Plans GEL 20m Subsidy for Socially Vulnerable Households
“We have proved with our deeds that we are socially-oriented government,” PM Garibashvili said.
24 Jul.'15 17:50
Armenian PM to Visit Georgia
PM Abrahamyan will also visit Kazbegi border crossing point between Georgia and Russia.
23 Jul.'15 20:08
Electricity Tariff Hike in Regions
Electricity distributor in Tbilisi also seeks tariff hike, citing depreciation of lari.
23 Jul.'15 15:18
Parliament Speaker on Georgia’s NATO Integration
Usupashvili said that Georgia wants more from NATO to speed up integration into the Alliance.

About Civil Georgia
Civil.Ge © 2001-2013, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
61