The sitting of the Budget and Finance Committee

11 Feb 2019
The sitting of the Budget and Finance Committee

The Committee approved the action plan for 2019 and defined the thematic reporters, as well as considered the draft resolution on approval of the Composition of the Competition Commission for Independent Auditors.

The draft defines the members of the Commission: Irakli Kovzanadze (Committee Chair), Paata Kvizhinadze, Roman Gotsiridze, Irakli Beraia, Grigol Mikeladze, Khatuna Gogorishvili, Gogi Meshveliani, Gia Benashvili and Levan Surguladze.

The Deputy Foreign Minister, Khatuna Totladze introduced the document for ratification on Privileges and Immunity of International Atomic Energy Agency. The Agreement of 1959 became effective in 1960 and currently unifies 108 states.

The Agreement is based on the status of IAEA which Georgia accessed in 1996. In line with the status requirements, each member state shall sign the standalone agreement with the Agency to define the legal status of the Agency on the territory of each state. Under the new regulations of Agency, every member state shall access the Agreement. In our case, the Parliament is to ensure mandatory recognition pursuant to the part 38, Article 12 envisaging deposition of the certificate for the depositor and to become effective upon accomplishment of the procedures. It is noteworthy that according to the Agreement, the legal status is defined applied to every international similar representation in Georgia. It is equalized to the legal status of international organizations and diplomatic mission and hence, does not envisage extra costs or any other changes”.

The Committee discussed with the II reading the Bill on Bookkeeping Accounting and Audit introduced by the Deputy Finance Minister, Giorgi Kakauridze, envisaging the change to paragraph 14, Article 28 providing that the persons exercising authorities of the partners of the treaty for at least 7 years prior to enactment of the law, and are not the certified bookkeepers, shall be granted with the status of the certified accountant.

Paragraph 141 is to be added to the Article 28 defining transitional period for the natural persons of IFAC member organizations in the OECD member states and/or EU member states willing to render auditing service in Georgia. The Bill envisages qualification tests till July 1, 2019.

The Committee approved the Bill and discussed the Bill by the Minority Factions: “European Georgia”, “European Georgia – Movement for Freedom”, and “European Georgia – Regions” on Tax Code, envisaging technical change to paragraph 2, Article 81. The paragraph is specified envisaging that the person, upon leasing real estate, pays 5% if it is not subject to special taxation regime.

Thus, the Government is assigned to introduce the change to the special taxation regime: exclusion of part 1 of the Annex N3. It means that the micro business status will apply to the persons who receive less than 30 000 GEL per year upon leasing the real estate, will not be taxed.

The Committee rejected the document and discussed the Bill by the Faction “Georgian Dream – Social-Democrats” on Accumulative Pension, introduced by the Deputy Chair of the Faction, Beka Natsvlishvili.

The Bill creates the new pensions scheme envisaging mandatory solidarity scheme between the generations mandatory for employed and voluntary for self-employed. The pension deposits are distributed as follows: the employer when paying the salary to the employee, transfers 2% of untaxed salary plus 2% by the state. The scheme, where the employees finance the pensions of the old aged citizens, envisages issue of the pensions from the solidarity scheme to the pensioners retired next year after accession to the scheme for lifetime.

The Bill also envisages the status of the special groups with high risk of professional diseases. Social partners in the Supervisory Council define the category of the grave and hazardous employees to be granted with the special status. The status allows their retirement 5 years earlier than the pension age. The Committee rejected the Bill.

Gallery

  • The sitting of the Budget and Finance Committee, February 11, 2019
  • The sitting of the Budget and Finance Committee, February 11, 2019
  • The sitting of the Budget and Finance Committee, February 11, 2019
  • The sitting of the Budget and Finance Committee, February 11, 2019
  • The sitting of the Budget and Finance Committee, February 11, 2019
  • The sitting of the Budget and Finance Committee, February 11, 2019
  • The sitting of the Budget and Finance Committee, February 11, 2019
  • The sitting of the Budget and Finance Committee, February 11, 2019