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Draft law amendments to the Ministries were presented to the Parliament (10TH MEETING OF BUREAU)

29 November 2017

1. The bureau registered the amendment of the law regarding the government structure, authority and activity rules. The 110th addendum to the Appendix was also amended. The government calls for accelerated regulatory review.

In accordance with the proposed amendments:

  • The Ministry of Energy and the direction of the management of minerals from the Ministry of Environment and Natural Resources protection joins the Ministry of Economy and Sustainable Development.
  • The Ministry of Environment and Natural Resources will join the Ministry of Agriculture and will be established as the Ministry of Environment Protection, Agriculture and Rural Development.
  • The youth affairs management department of the Ministry of Sports and Youth affairs joins the Ministry of Education and Science of Georgia; The Sports department of the Ministry of Sports and Youth affairs joins the Ministry of Culture and Monument Protection of Georgia and as a result, the Ministry will be renamed as the Ministry of Culture and Sport.
  • A special purpose state institution under the direct supervision of the Prime Minister - Emergency Situations Management Service will be created, which will take up the competence of the Prime Minister's advisory body - the State Security and Crisis Management Council. Hence, the State Security and Crisis Management Council and the Economic Council shall be abolished.

Regarding the financial part of the amendment, the initiator notes that:

  • The amendment will not affect the expenditure part of the state budget, as the main duties and liabilities of the existing agencies are still maintained in the new government structure and appropriate resources are required for their implementation. In addition, in the implementation of auxiliary functions related to the implementation of the above functions, certain optimization is expected in administrative costs and resources that will gradually be identified during 2018.
  • The adoption of the amended law may result in financial consequences for the persons whose activities fall in the jurisdiction of the law. However, the pre-calculations of mentioned above, is impossible.

See draft law package: https://info.parliament.ge/#law-drafting/14730

2. The government's initiative regarding the amendment of the Tax Code and Oil and Gas Laws was registered at the Bureau. According to the introduced amendments:

  • Obtaining the status of a special trade zone by the organizer of the market and fulfilling the obligations under the legislation is voluntary.
  • Regulations related to the commitment of the organizer of the market and the liabilities of the individuals carrying out the trade in the market are changing, including the obligation to provide the trade object and / or trade place with the cash register and to lease only to the individuals who are registered in the office of entrepreneurial and non-entrepreneurial (non-commercial) legal entities; the trader will be given special status and will benefit from different taxation regimes.
  • According to the procedures established by the Minister of Finance of Georgia, VAT payers registered in the Member State of the European Union who do not carry out economic activity in Georgia and do not have permanent establishment here, shall be reimbursed with VAT amount paid on the purchase of goods / services from VAT payer in Georgia.

As for the deferment, regarding the extension of the term of the benefits:

  • Until January 1, 2020, the obligation to use a cash register for physical/individual entities carrying out trade at a non-standard trading place on the market, shall be deferred.
  • The term of exemption from the payment of import tax on tobacco raw material moves from 5 January 2018 to January 1, 2023.

See draft law: https://info.parliament.ge/#law-drafting/14842

3. The initiative of Grigol Liluashvili was submitted to the Bureau regarding the amendment to the Code of Local Self-Government. According to the changes:

  • The position of the deputy chairman of the municipality council faction (which is paid remuneration) is determined as the official of the municipality council.
  • It is amended that the chairman/chief of the faction may have one deputy for each of the five members of the faction, but not more than 4 deputies. The rule and authority of the Chairman of the Faction and its deputy shall be defined by the Fraction Charter.

Impact on the expenditure part of the budget:

  • As the initiator suggests, the total amount of influence on the expenditure part of the budget of 64 municipalities is approximately 87 thousand to 282 thousand GEL per month.

It should be taken into consideration that the decision of the State Authority and the authority of the Autonomous Republics, which increases the amount of budgetary expenditure of the local self-government or reduces its revenues, shall be compensated by the recipient body (From the state or autonomous republic budget).

See draft law: https://info.parliament.ge/#law-drafting/14729

 

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