Management Target and Financial Overview
Libertarian economic policies kick-start modernization
Tax and tax rates slashed
Now only 6 taxes, down from 21
Flat personal income tax of 20% (to come down to 15% by 2013)
Corporate income tax 15%
By 2012, no taxes on dividends, interest income, or world-wide income
"Liberty Act":
Referendum is required for an increase in tax rates
Budget expenditure capped at 30% of GDP, effective FY 2012
Budget deficit capped at 3% of GDP, effective FY2012
Public debt capped at 60% of GDP, effective FY2012
Budget earmarks are limited
Red tape and import duties cut
Customs code harmonized with EU. Customs procedures reduced from 15 to 7
Capital controls abolished since 1990s
Corruption significantly reduced
In the World Bank's Ease of Doing Business survey in 2009 Georgia was 11th (out of 183), from
112th in 2005
In the 2009 Transparency International Corruption Index Georgia was 66th (4.1 score), just below
Turkey (61st, 4.4), the same as Croatia and above Brazil (75th, 3.7), China (79th, 3.6), India (84th,
3.4) and Russia & Ukraine (146th=2.2)
According to the International Republican Institute survey, 98% of Georgians didn't have to pay a
bribe in the past 12 months
In Forbes Tax Misery & Reform Index, Georgia was 4th best behind Hong Kong, UAE & Qatar
Ambition: Create a fast-growing free enterprise economy that attracts investment and become regional
logistical and banking hub
Loka
BANK OF GEORGIA
www.bog.ge/ir
April 2010
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