PMCG to conduct Pilot Regulatory Impact Assessment (RIA) on Tax Payment Simplification Reform

PMCG will produce an ex-ante RIA on Tax Payment Simplification Reform proposed by the Ministry of Finance of Georgia. The project aims to support data and evidence-driven policy development in Georgia and is implemented within the framework of the Georgia Economic Prosperity Initiative and funded by USAID.

The purpose of the reform is to simplify the tax payment procedure as well as the reporting and registration system of paid and declared amounts. The regulation proposes to abolish existing treasury codes and enable tax payment on the basis of one tax receipt. It also plans to change the system of accounting tax liabilities and paid taxes.

The purpose of RIA is to improve understanding of the real impacts of government intervention, including both the quantifiable and qualitative benefits and the costs of action, as well as to enhance government accountability, consultation and transparency.

RIA is a useful tool for governments to identify potential outcomes through an assessment of costs and benefits of the proposed regulation. RIA also facilitates communication between policy-makers and relevant stakeholders, while improving the awareness and participation of the general public in the regulatory process.

The project will also contribute to building the capacity of MoF personnel to design and implement policy reforms through consultative processes with the private sector and improve their technical skills to conduct comprehensive analysis of costs and benefits of policy reforms.