United National Movement on June 28 presented Economic Action Plan. The party's economic program focuses on liberalization of taxation, increase in funding for education institutions and for socially vulnerable groups.
According to the UNM plan the tax initiatives that are foreseen in the program will create 45.000 jobs by 2017. And in coming years, as representatives argue, the initiatives will help the businesses and individuals to create additional jobs. The plan is part of the UNM's program for the 2016 Parliamentary elections.
The opposition party wants to reduce the income tax to 15% by 2017 and to 10% by the end of the term. UNM plans to decrease the profit tax to 10% by 2020. The businesses that have yearly revenue of 90.000 GEL will be considered as small enterprises, and will not be taxed (currently the threshold is 30.000GEL). The enterprises earning up to 200.000GEL will be taxed by only 3-5 % (currently at 100.000). Additional, the VAT will be only paid by business that earn more than 200.000 GEL.
Furthermore, UNM pledges to increase pension (that is about to be raised up to 180 GEL from 160 in coming month) by 50GEL in November of 2016. The party promises to cut the bureaucracy and liberalize the economic environment.
The threshold for classifying tax evasion as a criminal offense, in UNM's program, is increased from 50.000GEL to 500.000 and the financial police is set to be abolished. UNM frontrunners commented that they believe such a measure will aid the economic development of the country and reduce bureaucracy.
UNM promises to ease the bureaucratic burden for receiving categorization for socially vulnerable individuals and families and provide financial support through insurance for medications to such groups and individuals. The program foresees increase in teacher's wages to 650GEL, raising the value of school vouchers by 50% and increasing number of government funded students by 5000.