The reform of the Georgian tax system and its consequences

One of the most important tools for state regulation of the economy is the tax sphere. The subject of this study is ongoing reforms in the tax system of Georgia and the analysis and evaluation of their results. The research focuses on several important reforms: changes made in 2005, the adoption of a new tax code and a reduction in the tax burden; On the Estonian model of profit taxation, which has made possible to reinvest profits in business and led to the mixed opinions among the experts of economy, or those interested in studying this field. The study also analysis the reforms which the author believes Georgia needs to implement in the tax system. Those are the need to amend the sanctions for tax offenses and the regulatory norms.
In the present thesis, the reforms of the tax system are evaluated from different positions, taking into account the arguments of the opponents and the supporters of the reforms, using their reconciliation and confrontation, which makes possible to analyze the issue from different perspectives. In the present research, statistical information posted on the website of both Geo stat and the Ministry of Finance of Georgia is used, using which the results of the reforms of the tax system of Georgia are analyzed. The research is based on scientific works, statistical data and reports presented by the public agencies, related to the reform of the Georgian tax system.