The Association of Free Business of Georgia (ASB) has asked the Finance Ministry to raise the turnover threshold at which companies must register for value-added tax, from 100,000 lari to 300,000 lari.
A limit unchanged since 2005
ASB says the current ceiling is outdated and holds back small and medium-sized firms because it has not been updated since 2005. The group argues that prices in Georgia have risen by roughly 2.7 times since then, while the economy has grown almost threefold, so the existing limit no longer reflects real conditions.
What ASB expects from a higher bar
The association says a higher threshold would ease the tax burden on businesses, make it simpler for firms to grow, support economic activity, and could have a positive effect on employment. The proposal is now with the ministry; officials have not announced a decision.
