A bill registered in the Georgian Parliament would push the VAT exemption for long-unfinished construction projects from January 1, 2029 to January 1, 2033, according to Georgia Today.
According to Georgia Today, a bill extending tax exemptions for construction projects that began before August 8, 2008 but remain unfinished has been registered in the Georgian Parliament. The Finance and Budget Committee discussed it at its first reading and supported it. The bill is expected to go through an expedited procedure, and the law would enter into force upon publication. Under current legislation, the supply of real estate in these projects, as well as related construction and installation services, is exempt from VAT with the right to deduct until January 1, 2029. The amendments would extend this by four years, to January 1, 2033. The explanatory note says that a program supported by Tbilisi City Hall has been operating for years to address the needs of people affected by unfinished construction. New development companies taking part in it need bank financing to meet their obligations, and developers and banks pointed to the need for an extension since the commissioning deadline was set for 2029. A stable legislative framework, the note argues, would make it easier for banks to issue loans and financial guarantees so that the projects can be completed. The changes could reduce state budget revenue from VAT, but would not increase budget expenditure or create new financial obligations, the note states. The bill was initiated by MPs Paata Kvizhinadze, Irakli Kheladze, Shota Berekashvili, Bezhan Tsakadze, Giorgi Barvenashvili and Zurab Rurua, with the involvement of Tbilisi City Hall. The bill has not yet been adopted in final form.