Yesterday, the parliament of Georgia supported the Tax Code with the second hearing – 136 votes for and 13 against. As a result of this, Roman Gotsiridze, chair of the Finance-Budgetary Committee, was released of heavy burden in the very sense of these words.

“Several months ago I was going to the State Chancellery, dragging my bag. I came across journalists who pitied me and got interested in my plight. I explained that I had 12 kilograms of remarks in regards to the Tax Code Draft. Today I am glad that weight of my bag reduced to half kilogram” – Gotsiridze was waving the emptied bag and scales at the parliament, expressing his gratitude to the executive branch.

“From January 1 one will have such document that will facilitate economic development and boost entrepreneurship,” stated Gotsiridze. Chair of the Finance-Budgetary Committee did not worry that more than a pound of remarks is still left in his bag, saying that nothing is perfect in the world.

Apart from Roman Gotsiridze, the government also breathed with relief yesterday; for executives, adoption of the new Tax Code with the second hearing means one less frontline in the “war” against legislators.

Yesterday, the Finance Minister Zurab Noghaideli spoke about the “truce conditions” with the parliamentary majority in details. In the end, disputed clauses were established in the following form: tax rate for families with the annual income ranging from 40,000 to 60,000 GEL was determined at the 0,05-0.2 percent of the property’s market value, for families with the annual income ranging from 60,000 to 100,000 GEL – 0,2-0,4 percent, and for those whose income exceeds 100,000 GEL – 0,4-0,8 percent.

Also, obligatory declaration of incomes will cover only those physical entities, the annual income of who exceeds 35,000 GEL. As for the imposition of taxes on other property of physical entities – cars, land plots, etc – this was adopted in the form the Finance-Budgetary Committee demanded.

“Until people become rich they won’t have to pay the property tax,” authors of the new Tax Code were “calming” underprivileged.

Incidentally, levying of car import also followed the scheme proposed by the Finance-Budgetary Committee; instead of the excise and value-added tax, cars will be levied with fixed tax.

“Imposition of taxes on old cars – aged more than six years, remains virtually unaltered, as for the increase of taxes on new ones – it is tolerable,” states Roman Gotsiridze.

The new Tax Code is to introduce significant changes in the field of agriculture as well: agricultural product processed on the land plot of five hectares will be exempted from all taxes before its industrial processing; those who own more than five hectares of land but have annual turnover less than 100,000 GEL will pay only the land tax; and those with annual turnover exceeding 100,000 GEL will not pay the value-added tax but cannot avoid social and income tax. The said mode is to function for two years – till January 1, 2007.

According to the approved Tax Code draft, the press will be exempted from the profit and property tax. Only salary and social taxes stay in force. In other words, the basis for forming planned pension fund for journalists.

“Hence abolition of these taxes will represent an action against journalists and not support to the press,” claims Gotsiridze.

Opposition views the Tax Code suspiciously, however. Davit Berdzenishvili, member of the Republican Party, is surprised, for example, why forces backing the government consider the reduction of VAT with two percent so important, moreover if this amendment will go into force only after six months…

The session hall turned out rather empty following the Tax Code draft adoption. That’s why only 28 MPs were attending discussion of the bill on the Higher Education with the second hearing. Shortly after the Rightist Opposition have left the hall as the sign of protest.

“When the matter refers to education it is desirable more people to attend it” – this wish of MP Vasil Maghlaperidze did not come true yesterday.

Davit Kirkitadze, deputy chair of the National Movement-Democrats faction, explains less interest regarding the bill on the Higher Education with the fact that members of the parliamentary majority had received answers to all questions during the faction sitting.

The bill, which brought about large-scale public excitement in Georgian society, easily overcame the second parliamentary barrier; following the second hearing, 118 MPs voted in favor while just 10 were against. All but one clauses of the bill were agreed upon yesterday – the article, which turned out apple of discontent in the parliament, touches upon property and finances of higher education institutions, namely the issue of grants’ movement. MPs plan to find consensus before the third hearing takes place.

Besides boycotting the bill on the Higher Education, the Rightist Opposition once again appeared in the limelight with a stentorian statement: Davit Gamkrelidze plans to file a suit to the Constitutional Court and threatens with impeaching Irakli Okruashvili, the Internal Affairs Minister, and Zurab Tchiaberashvili, the mayor of Tbilisi.

“Patrol Police cars bear only English inscriptions and this represents a violation of the Constitution,” indignant Gamkrelidze stated.