About Civil.ge
Eng | Geo | Rus
Last updated: 19:13 - 22 Nov.'17
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 Nov.'17 19:13
Three Suspects Dead as Anti-Terrorist Operation Ends
The State Security Service reiterated that the suspects were foreign citizens.
22 Nov.'17 18:22
Anti-Terrorist Operation Over
The status of the suspects still remains unclear.
22 Nov.'17 18:02
Javelin Purchase ‘Solely Defensive,’ Georgian Officials Stress
Deputy Foreign Minister Davit Zalkaliani says the decision “reflects the will of two sovereign nations.” 
22 Nov.'17 16:17
Anti-Terrorist Operation Continues
The number and origins of the suspects remain unclear.
22 Nov.'17 15:26
Deportation of Georgians Linked to National Security, Ukrainian Authorities Tell Ambassador
Gela Dumbadze rejected any connection between the deportations and Mikheil Saakashvili’s activities. 
22 Nov.'17 13:07
One Detained as Anti-Terrorist Operation Continues in Tbilisi
Additional security forces and light armored vehicles have been deployed to the scene.
22 Nov.'17 10:39
Large Scale Police Operation Underway in Tbilisi
Media outlets report that Georgian security forces are carrying out a counter-terrorist operation.
21 Nov.'17 17:07
EU, Georgia Adopt Revised Association Agenda
The new document will facilitate the implementation of the Association Agreement/DCFTA for 2017-2020.
21 Nov.'17 12:50
U.S. State Department Approves Sale of Javelin Missiles to Georgia
Tbilisi will purchase 410 Javelin missiles and 72 Command Launch Units.
21 Nov.'17 11:41
CSOs: Abolishing EU&NATO Minister’s Office without Consultations ‘Unacceptable’
Twenty-five civil society organizations call for further discussions over the role and functions of the Office.

About Civil Georgia
Civil.Ge © 2001-2017, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
21