The Georgian tourism sector businesses have had ₾40 million ($13.9mln/€13.3mln) written off in their property taxes from the previous year following a Government decision to alleviate effects of the Covid-19 pandemic on industry, the Georgian Revenue Service announced on Monday.
Changes in the Tax Code of Georgia will see over 1,200 taxpayers benefit from the initiative through a reduction of their liability in property tax, the state body added.
The activities benefiting from the initiative include:
Hotels and similar accommodation facilities
Vacation and other short-term accommodation facilities
Restaurants and mobile food service businesses
Beverage service activities
Travel agencies, tour operators and other booking services and related activities
The office said the property tax exemption also applied to property transferred by lease or other such forms if it was used for any of the aforementioned activities.
Georgian Deputy Economy Minister Mariam Kvrivishvili said the decision had helped to “strengthen the private sector” in the country and played a “large role” in the “rapid recovery of tourism”, adding it facilitated the implementation of new projects and the creation of new jobs.
The Government decided to write off the property taxes from the country’s tourism sector businesses in April this year, following studies of challenges in the sector.