About Civil.ge
Eng | Geo | Rus
Last updated: 02:38 - 27 Nov.'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
27 Nov.'14 02:38
GD Divided as MPs Debate Surveillance Regulation Bill
Opposition MPs, as well as some GD lawmakers are against of govt-backed bill.
26 Nov.'14 23:39
Latvian FM Lays Out EaP Riga Summit Goals
“We definitely want to see Riga Summit as a visa liberalisation summit,” Rinkēvičs said in Tbilisi.
26 Nov.'14 11:45
Karasin on New Treaty Between Moscow and Sokhumi
Russian Deputy Foreign Minister expressed hope that dialogue with Tbilisi will continue.
25 Nov.'14 22:20
Latvian President Visits Georgia
President Bērziņš is accompanied by government members and a large group of Latvian businessmen.
25 Nov.'14 18:34
Case of Arrested MoD Officials Largely Declassified
Prosecutors said only 7% of the case, related to sensitive military information, remains classified.
25 Nov.'14 12:03
NATO ‘Doesn’t Recognize So Called Treaty’ Between Moscow and Sokhumi
NATO Secretary General said it “does not contribute to a peaceful and lasting settlement.”
25 Nov.'14 03:26
U.S. ‘Will Not Recognize Any So Called Treaty’ Between Moscow and Sokhumi
U.S. said its position “remains clear: these regions and integral parts of Georgia.”
25 Nov.'14 01:03
EU: Moscow’s Treaty with Sokhumi ‘Detrimental to Efforts to Stabilise Situation’
It “contradicts principles of international law,” EU foreign policy chief said in a statement.
25 Nov.'14 00:39
Georgian President Calls for Int’l Efforts to Counter Russia’s ‘Annexationist Policy’
Treaty signed between Moscow and Sokhumi “further aggravates situation” in region, he said.
24 Nov.'14 23:46
PM Condemns New Treaty Between Moscow and Sokhumi
Garibashvili said it shows Moscow’s “unwillingness to actually improve political relations” with Georgia.

About Civil Georgia
Civil.Ge © 2001-2013, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
67