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Wednesday, 26 October 2016


Chichvarkin’s distant love for Georgia

22.03.2011  |  18:03

14930.jpegIdling away his time in London, former owner of Euroset Eugeny Chichvarkin praised the "best Tax Code in the world"- the Georgian one. If we believe various international ratings and President Mikhail Saakashvili, Georgia is ahead of the planet in the simplicity of running business and the lightness of the tax burden. Such opinion is fully shared by innovator Tamaz Vashakidze and is fully rejected by Labourite Soso Shatberashvili. Chichvarkin takes time to test the benefits of the Georgian realities on himself, though his old little sin before Tbilisi - a Euroset office opened in Tskhinval - must have been already atoned.


Eugeniy Chichvarkin who continues sheltering in England, though all accusations against him have been withdrawn in Russia, will soon be cited by the entire Georgia. The runaway Russian businessman declared that the Georgian Tax Code is the best one in the world. "Why?" - he was asked by hosts of the Unreal Policy program Andrey Kolesnikov and Tina Kandelaki. "Because they've got the best implemented law in the world. The best one! I assure you", - he answered uncompromisingly.

To his cost, Chichvarkin also added that the social law in Georgia is also very effective. Bloggers estimated his words at once: the absence of a social load on business is really a great advantage from a businessman's point of view. If we take pure capitalism as an ideal when a human life is nothing and money is everything, then Mikhail Saakashvili's government has really succeeded in creating a paradise for business. Feeble and passive members of society sink to the bottom in this paradise but those as enterprising as Chichvarkin must take to it like a duck to water.

The former owner of Euroset stated that even in England running business is very hard. In Russia, he was prevented by corrupted officials, while in England, half of one's revenue is taken away legally in the form of social taxes. And he, Chichvarkin, does not want to provide for those who are on welfare doing nothing.

When, let him move to Georgia! According to Head of the Center of Innovative Development of Enterprises Tamaz Vashakidze, businessmen really feel comfortable in this country.

- It is absolutely true; our tax law is one of the best, especially for small business. What does it mean? It means that the authors of the Tax Code considered Europe's experience, I mean, they divided small business into micro (small) and medium enterprises, - he stated in an interview to GeorgiaTimes. - However, the figure of the annual turnover for defining the category is a bit lowered. But I believe the situation will be corrected because the ombudsman-businessman who has been recently appointed to settle these issues knows business from inside and has stated that 30 thousand laris a year is a small amount. Now we are talking about 60 thousand laris. But as a business association working with small business, we believe that 60 thousand is also a small amount. The point for small business is 500 thousand laris.

- Experts of the Business and Finance Georgian magazine underlined that there are plenty of restrictions in various fields for small business in Georgia. The status of a micro-businessman is unavailable to tutors, sewers, shoemakers, barbers...

- One should differentiate between the law and further acts and orders devised by the Ministry of Finance. We started our conversation with law. The law is good. Later on, the head of the tax service thought that there are too many businessmen in the trading field, which means they may be concealing their turnover and the tax area will be reduced then. That's a crime. I, Tamaz Vashakidze, always say that a cash register is the defender of both the businessman and the state. No one can change what is recorded there. It is necessary to introduce a provision on tax payment according to the cash register records. If someone does not have one, Criminal Code should be applied then. One should not mix up the law and the crime. Today, a businessman having up to 30 thousand is not obliged to make any payments. But it would be improper to make no payments at all. A businessman is a citizen of his country and he should contribute to GDP; he should have a cash register and the turnover interest rate should be proportionate to his capabilities. One cannot compare the revenue in the trading field to production or services. I guess we should make calculations basing on self-cost. It's difficult to set the self-cost in the servicing field, so the rate of interest should be the highest there. But the self-cost can be easily set in production. It means the rate should be 3 percent in the production field, 5 percent in the trading field and 10 percent in the field of services. It would be the optimal figure, a fixed cash register turnover tax.

Thus, Tamaz Vashakidze agrees with Chichvarkin, admitting though that "one of the best" codes needs being corrected. Besides, according to the head of the Innovation Center, good law does not save Georgia from the vice of all the former socialistic republics - the absence of business skills.


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