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increase in funding in a number of areas.
The government has maintained its growth forecast for next year at 6%.
In the first nine months of 2021, the Georgian economy grew by 11.3% y/y. The general government deficit target is kept at 4.4% of GDP.
The public debt is seen as reaching 52.2% of GDP by the end of 2022.
“The revised 2022 budget draft includes significant changes in the allocation of funds and we have more funding for a number of spending entities. The revised version takes into account some of the remarks and suggestions made in parliament during the review of the initial version,” the chairman of the parliamentary committee for finance and budget said.
6.2 Taxation
Georgia drafts strict taxation and regulations for gambling industry; bans gambling ads
The Georgian Ministry of Finance on November 29 unveiled a detailed model for the regulation and taxation of the gambling industry, which prohibits those aged under 25, public officials and vulnerable citizens (altogether over 25% of the country’s population) from gambling. Taxation is rising by 65%-70% as an effect of the new regulations as well.
Advertising is banned, gambling abroad is banned and family members can ask in court for an individual ban for gambling.
Restrictions are not imposed against foreign nationals gambling in Georgia. The reforms are justified by Georgian authorities as a way of mitigating the social impact of the industry.
Incomes of revenues from gambling will be subject to a 2% income tax.
All gambling ads will be banned in Georgia starting March 1, while citizens under the age of 25 will no longer be able to use gambling websites, Prime Minister Irakli Garibashvili announced on 24 February.
The head of the government called the issue one of the biggest problems for Georgian society over the years, adding GEL1.5bn ($476mn/€426mn) was spent in online casinos every year, mostly involving youth and minors. Speaking about the new restrictions, the PM said “many people were involved in these vicious games”, adding even a reduction of the figure by a billion would “already be a great relief”.
Garibashvili highlighted a conversation he had had with his economic team, the government and the parliamentary majority around the announced limitations on gambling. The PM said the government had plans to raise taxes on online casinos in general, adding his team was prioritising the development of sports, promotion of education, and creation of employment opportunities. Azerbaijan also took a similar step few months ago, banning the use of Azerbaijani cards in online casino websites.
31 GEORGIA Country Report August 2022 www.intellinews.com