Discussing Structural Economic Reforms with Moldovan Government and Private Sector

At the end of October, PMCG held meetings with the Minister of Finance of Moldova and with the European Business Association (EBA) to share experiences of dealing with structural economic reforms.

Aleksi Aleksishvili, Chairman and CEO of PMCG, reviewed the recent history of Georgia in this regard and described the challenges the country faced before the economic reforms were introduced.

He stressed the importance of a complex approach covering tax, customs and trade policy, licenses and permits, business regulatory reforms and their role in bringing about a corruption-free environment and significant growth in the ratio of tax revenues to GDP from 12% (2003) to 24.8% (2014) and in tax revenue (92% of total state budget revenue in 2014), and drastic reduction of the informal economy from 65% to 10% of GDP.

Focusing on tax reform, Aleksishvili emphasized several major factors that made the business environment more attractive such as a simple and easy tax system, low rates, easy electronic procedures and removal of corruption.