Tbilisi (GBC) - After adjusting the VAT taxation regime, the leasing market sees the correction of tax gaps in the part of the property tax.
According to Kote Sulamanidze, General Director of BB Leasing and BB Insurance, despite the fact that the leasing sector is considered to be the main driving force for the economy of developing countries. According to international practice, it is functionally almost equal to banking, its potential is untapped in Georgia.
As of Sulamanidze, the leasing company has to pay tax on the property taken as an asset on a full-time basis, counting for the whole year. Even if he has a week. It is also taxed from the original cost. In this reality, the property tax rate of 0.6% makes the company's tax burden very heavy.
According to him, after the Investment Council became interested in the model of taxation of leasing companies (2 years ago) and made a corresponding conclusion. The situation in the VAT sector has improved significantly. The return of VAT has significantly eased the burden, but there is still work to be done on mechanized transport. For example, at the moment the actual purchase of agricultural machinery is exempted from VAT. Not in the case of leasing, and therefore it is more expensive for the user.
Whereas it should be cheaper because the leasing company is a wholesale buyer. The cost of hedging also makes the equipment more expensive, because the company has a contract with the appraiser in foreign currency. This operation is done every month by consignment method.
According to the financier's assessment, the discount is primarily useful for the consumer, because it makes the product cheaper, and investing more in the economy means getting more income.
