Ways to improve small and medium business taxation system in Georgia

Today, small and medium enterprise play an important role in development of the world’s economic. This sector is the key element of revenue growth, reducing unemployment and GDP growth.
In Georgia, as in the world, small and medium enterprises have a great impact on economic prosperity. That’s why Georgia is trying to promote the growth and proper development of this sector. To achieve all of this, first of all country tries to improve the principles of taxation.
The legal and institutional framework for small and medium-sized businesses has changed significantly since 2016 year, the main determinant of it was the document: "Small and Medium Entrepreneurship Development Strategy of Georgia for 2016-2020 years" This strategy identified the priorities, which will bring significant success to Georgia, as a country with a developing economy.
The Tax Code treats small and micro enterprises as an important and smallest element of the business sector development. This is why in terms of taxation they have always had more privileges so that taxes do not complicate their economic situation. We should also take into account the fact that, a large number of micro and small enterprises avoided taxation and payment of taxes in accordance with the Tax Code, so the introduction of benefits and simplification of administration by the government must be considered as an important step towards legalizing business and reducing the share of “shadow business”.
It is very important that this sector can’t be stopped by situations such as: lack of entrepreneurial education, restrictions on finances, technological backwardness and access to world’s markets. All this can be improved only by improving the tax system.