Georgia: changes to the Tax Code adopted

On June 17 the Parliament of Georgia in the first reading adopted amendments to the Tax Code of the country. According to these amendments, together with the current taxation system for owners of private hotels a fixed tax is introduced, and now the owners will be able to choose a payment system by themselves.

According to the Draft Law, tax for family-type hotels during the tourist season will compose 10 laris per square meter monthly. In accordance with the current Code, the tax is calculated based on the number of guests.

According to the authors of the Draft Law, after changes adoption the entrepreneur will be able to decide by himself, which taxation system (s)he prefers.

A part of the parliamentary opposition argued against this Draft Law and stated that these changes cause price increase in private hotels. However, the majority believes that this is a minimal amount, and it will not affect prices, the "Novosti-Georgia" reported.

According to Mimi Gabrichidze, one of the leaders of the opposition party "Free Georgia", tax applies to both large and family-run hotels. In particular, the hotels owners will have to pay 10 laris per square meter. And this, according to Ms Gabrichidze, will increase prices in this sector, the "Georgia Online" reported.