Page 37 - GEORptOct22

The government revised the budget in line with 10% GDP growth this year, compared to the 9.5% assumed previously. In nominal terms, GDP is expected to hit GEL65bn this year. According to Kovzanadze, the revised version of the 2022 budget includes an increase in funding in a number of areas.
Economic growth averaged 10.3% for the first eight months of the year which enabled the government to increase the state budget for the current year. The accumulated budget deficit has been reduced to 3.2% of GDP. Government borrowings have been brought down to 40% of GDP. Only a couple of years ago it was around 60% of GDP. Currently it is under 40%, noted the Prime Minister of Georgia.
The government has maintained its growth forecast for next year at 5% and GDP is expected to hit GEL80bn.
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.
37 GEORGIA Country Report October 2022 www.intellinews.com