Kakha Bendukidze, State Minister in Reform Coordination, says that law “On Free Industrial Zones” will enter in force, presumably, from autumn. The document, worked out by the State Minister office, was considered by finance-budgetary committee on May 15. It should be discussed in 1st hearing at the plenary meeting of the Parliament in near future.
The draft permits government to establish free industrial zone on any territory of more than 100 ha area. Establishment of a number of free industrial zones is considered, among them, north from Poti (Black Sea port).
Zero profit tax will be applied in free industrial zone only for those companies, which do not have any business relations with Georgia. As Bendukidze mentions, the decision was conditioned by the fact that applying the same regime on the local residents could affect other territories development.
There will be zero property tax regime in zone as well. Import of foreign production and carried out operations in the free zone will be not subject to VAT. Settlements could be done in any currency.
The company, registered in the zone, will perform its activity on other territory of the country, as foreign company branch. Importing Georgian production in the zone will be considered as export, while coming-out – as import.
It should be mentioned, that project has its opponents as well. Lado Papava, member of finance-budgetary committee and ex-minister of economic, fixed his negative attitude. He noted that tax allowances and liberal Tax and Customs Codes are operating in Georgia. The MP thinks that creation of such zones is unjustified, while non-controllable territories exist in the country (Abkhazia and Tskhinvali region).
