Taxation - Public Private Challenges in Georgia

prof. Eka Gegeshidze

Work contains comprehensive analyses of taxation policy in modern Georgia, exploring through diffident indicators, among them “Ease of Doing Business rankings” and “share of the Informal Economy in Georgia”. The main research questions in the study are deep analysis, why is the informal economy high, despite the fact that Georgia is favorable for doing business? Also, trough expert interviewes and focused groups tested the research question if the indicator of the informal economy shows real pictures of the informal economy, obtaining sufficient evidence is that indicator of informal economy shows truth. In the work is shown historical time line of taxation reforms from independence of Georgia till today. Work finds that shadow economy in Georgia caused by policy based compromise “the sharping of taxation administration burden” has a significant impact on reducing the political rating, especially in a fragile democratic country and in a developing country affected by international or domestic shocks.