Greetings!
I had a chance to open several facilities in Poti today, among them I have visited the building of a new airport. You know that we have started the construction of the biggest airport in whole Caucasus in Poti, with the longest departure line in whole Caucasus that will be longer than Tbilisi airport and other airport in Caucasus region. We have already installed modern radar systems and in reality it will be an airport of Poti and Batumi.
This will be an airport that will serve at the same time very important tourism centers - Anaklia, Mestia, Batumi and Poti - as very important economic center of Georgia.
Practically we are developing a triangle. We are going first of all to have minimum 100 thousand population in Poti by 2012 according to modernization plan, by that time population in Batumi will be minimum 250 and possibly 300 thousand. In Kutaisi the number of population might increase up to minimum 250 thousand or 300 thousand - it means that this triangle will consist of more than 600 thousand people and more. Anaklia will become very important center and all of this, together with the urbanization process will give us a chance to carry out very important economic activeness in this very important and strategic region. Poti airport, the construction of which I have visited today, will fulfill the same function that Sokhumi airport cannot fulfill within the conditions of occupation. This is a very important regional and transit airport that will serve departures and landings in any type of weather.
At the same time I am very glad that today we are opening a new building, the new center of Poti economy, Economic Zone of Registration.
Looking at this new building, it is obvious that we have gathered here to celebrate our next small success, but it doesn't mean that we forget how unsuccessful this period is for the world economy. This will seriously reflect on Georgian economy, on the income and welfare of each Georgian family.
It is impossible to weaken thoughts about our citizens that live in the hardship in this world tornado of increased prices.
Those, who observe events that develop in world policy and economics, know that first of all it is hard to forecast how this global economic disaster will develop, would it be possible to calm it down, or the situation would become more confusing.
It is a fact that several future months will be the period of high economic risks and for us there is no other more important priority than defending our economy, caring about the assistance and support of our families.
Unfortunately, we as a one separate country, have not enough levers to survive this period without any pain and without taking any risks, but our aim is to do absolutely everything to lighten existing conditions for our citizens. Now, even a little support provided towards our citizen is of a great importance.
This is why first we found some resources for distributing 20 GEL electricity vouchers to all the families.
Now we are starting to distribute 30 GEL food vouchers that will lighten domestic expenditures by 30 GEL for our families. At the same time we work on the issue to make sure that during the year when we will mobilize and accumulate these amounts, the pensions would increase stage by stage, because the pensioners are in a greatest hardship as well.
People in villages are in hardest circumstances today; this is why we are strengthening our support to regions and increase financing agriculture by 150 million GEL, in order to create stronger guarantees for the development of agriculture and creation of stable jobs within the villages.
Of course any one-time aid is only temporary episode and it is not enough. I know it really well that 50 GEL benefit got by food and electricity vouchers is a drop in the sea comparing to those needs that our families have.
This is why our major aim is to create long-term basis in order to increase level of living in Georgia by developing agriculture and tourism, by supporting local industry and creating new jobs.
It is very important to have better business climate in Georgia, where everything will be in order, where the entrepreneur would reach success much easily, would be maximally defended and would have a sense of justice.
Our aim is to help people in this critical period by separate social programs, but we understand perfectly that it is impossible to reach welfare by these one-time actions.
We would be able to reach welfare only by creating long-term economic guarantees, only by employment and improving business environment.
An example of such long-term guarantee is this new facility, which we are opening today; which at the same time represents an example for state or private company cooperation. I have travelled by taking new road up to Poti that we have managed to construct in water and marshland. Too much money was invested in the development of this infrastructure. This is the biggest building and a specific example of how well could state and business cooperate.
We have already opened Tbilisi and Batumi Economic Zones of Registration and we promised you that this process would continue.
Now we are opening Poti Economic Zones of Registration- this is a facility of unprecedented size in Georgia, registration center is located on several hectares and parking lot is specially planned is envisaged for several hundreds of cars.
It is same as in Tbilisi and Batumi REZs, tens of thousands of our entrepreneurs, who will use service of REZ would never have to wait for long time and walking from one company to other entity. They will get fast and efficient service by rather simplified and comfortable procedures.
Poti is the major gates for Georgian economy and this facility would be the direct echo of it.
The rehabilitation of other gates is also important. Sarpi new border-crossing point will open on May 26, 2011. As a result, besides small facilities, TAX infrastructure will get much better within the whole country and will better serve our citizens.
We have declared new course in November aiming forming just, simple and trustable system.
Part of events planned within the frames of this program is already fulfilled. Part is in the process of fulfillment and I observe it on a daily basis.
New tax code is in force from January 1 and accordingly new regulations that aim lightening taxpayers conditions got activated.
- Taxation ombudsman started to work - one more institute defending interests and rights of taxpayers, also for the restoration of violated rights. A day will not pass for me not to see how an entrepreneur, a taxpayer won a case to the state and stood for his truth. May they do not show much on TV, but the ideology, course and direction is clear - fair relationship have been formed during partnership conditions and today there is no more like this: "when it was like this when a small man won to a big man". In reality everyone must be equal and everyone should have equal rights.
- We are implementing new mechanisms, according to which if the actions taken by a taxpayers are caused because of mistake or lack of knowledge, especially prior law was very uncertain and it was very easy to make a mistake. In case the taxpayer doesn't aim avoiding paying taxes, taxpayer might be liberated from the sanction. It was different earlier - "it was in a different way - a GAI inspector used to hide behind a turning point and was very satisfied if he would caught you on something. The same was a tax inspector in Georgia before and it happened not long ago in Georgia, much later than cancellation of road inspection, but this problem is totally removed for now.
- Aiming stimulating businesses we are implementing special regime of taxation of VAT, according to which the taxpayer that have paid 200 000 GEL VAT for the sake of budget would be liberated from the obligation of paying VAT during the import. This is equal to investment done by the state and such a capacity of interest-free credit would reach 1 billion GEL during one year as an assistance stimulating business.
- Tax inspection request got activated - the taxpayer is granted a right to request tax inspection during the comfortable period for him from the revenue service. This will provide good partnership relations between the state and private sector.
- The most important thing for business is to make a long term forecast; It later helps banks issue low interest credits and this is why we have introduced preliminary taxation decision. Now the entrepreneur has a chance to ask a question to revenue service and find out ahead what will be the specific amount he has to pay. It for sure will help him to take a right business decision and will help banks in crediting businesses.
- Within the frames of tax system modernization plan electronic declaration mechanisms are envisaged as well - this will significantly save time, energy, finance and labor expenditures to the taxpayer. More than 85 percent already uses this service. I would like to tell you that this is the highest indicator within the whole post Soviet space. It means that cultural relationship is being formed between the taxpayer and business. It is the same here - you should no longer walk in the mud, ask someone to help you and humiliate yourself, the same is electronic relation with a taxation inspector. You are at home or in the office and bring in order everything by using computer only.
- 100 companies are already using electronic invoice - this exclude a chance of having fictitious transactions, at the same time making mistakes during filling up a form.
- Passport control is simplified as well - physical persons are getting through passport control without getting out of light vehicles. When a new point will open in Sarpi, only one side will inspect documents. Same as we did it on Armenian and Azerbaijani boarders. A person will no longer have an unpleasant feeling like it was before.
As a result of new economic course many more steps are being made in order for businessman to feel more relief.
Each such news, each such new facility, provides more and more jobs and more national wealth gathered by our entrepreneurs.
There are people, who try to implement hopelessness and sense of having no perspective daily. World processes support them in this indeed. In Georgia there is not everything like it has to be and we still have to improve many gaps.
But everyone must know that we will do everything in order not leave pessimism a place to exist - for overcoming any economic difficulties, for enduring through any tornado.
We have sent a governmental group to Singapore recently - the ministers and MPs. Singapore was ten times in worth conditions then us. The geographic location of that country was much alike ours. They were much poorer then we are today and just because they tried their best and set themselves an exact object - what stages should they had to go through in regards of economic policy - they are one of the rich state today all around the world. They do not obtain oil, have got no soil and not even their own running water. Our fellows came back very much inspired. If you believe in what you do you will be able to reach anything. We have such an examples and Georgia, by its data is already on that road to become an exemplary model for everyone.
We will never terminate construction processes and will take care that tomorrow would be better than today; to create more jobs in order for people in villages and cities have stable source of income, in order to activate new enterprises and those spheres of economic to get more stronger that can obtain more advantage in Georgia.
Poti should become a symbol of it.
I said today - development of Batumi has started. Of course everything is not how it should be in Batumi, there is hardship there still, but compare to what it was earlier city has made a great jump forward.
Poti might even catch up and outrun Batumi if we plan everything in a right way. This city should become the model of successful economy, people are waiting for this for a long time already.
We must turn new EZR to a zone of 100 percent employment and free of poorness.
Thank you very much.