Challenges of the Georgian Tax System in the Pandemic and Post-Pandemic Period
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The pandemic caused by Kovid-19 for Georgia and the world in general has become a kind of test, which has acquired a special scale and completely changed our daily lives. The pandemic affected all areas, virtually without exception, and provided a sort of test for each country and its systems.
In the process of the pandemic, the tax system became even more important in saving the country’s economy, as a kind of tool, the correct use of which depends on the results that the country will get in the pandemic and post-pandemic period. The tax system is an important part of the country's economic and financial infrastructure. It is through it that financial settlement is carried out quickly, safely and reliably. This is one of the main preconditions for the proper functioning of the financial and money markets. Finally, it contributes to the stability and effeciency of the economy in general. Issues related to the improvement of the tax system are the most important issues of Georgia’s economic development policy. The proper functioning of the country's economic system depends significantly on the tax policy pursued by the state and the proper functioning of the tax system. Taxes, in turn, are a tool for the state to influence the economy. Issues related to the improvement of the tax system have always been and and will be the most important key issue of economic policy, it became even clearer during the current crisis. The study analyzed the tax challenges that our country faces during the pandemic and post pandemic period, and reviewed the solutions that partially addressed these challanges. The income tax rebate of up to 150 GEL was significant, although it is unclear how the month of November 2020 was not covered and the companies received thousands of GEL in expenses. To get it we can consider it a part of the tax benefits of the tourism assistance package, however unfortunately it was not large-scale. There was also positive news, a lease rebate, when cash method of taxation instead of accrual was introduced in specific months, although this is not enough. It was necessary and is to extend the benefits to VAT, to reduce it by a few percent so that the aid is actually large-scale and more tangible. t is necessary to defer or abolish property taxes for those types of businesses that have had their revenues drastically reduced or closed. It is still unclear whether the pension system will not be used in this process, it is necessary to reconsider the approach to the mandatory principle of the pension system, because in this age-old crisis it is incomprehensible to continue the principle of mandatory payment in a completely monolithic manner.