Georgian cabinet finalized draft of the new tax code on August 26 during the session held in Batumi, the capital of Adjara Autonomous Republic.
As anticipated the draft considers cutting down number of taxes from 22 to 9. The rates of some of the taxes will also be reduced.
According to the draft tax code, which was described by the cabinet members as ?business-friendly,? the social tax will be reduced to 20% from current 33%; income tax ? from 20% to 12%, value added tax ? from 20% to 18%.
Georgian Prime Minister Zurab Zhvania called for the Parliament to consider the proposed tax code and approve it by October.
It is expected that the new tax code will be enforced starting from January, 2005. ?We will start a new life with this tax code from January,? President Saakashvili said at the cabinet session on August 26.