Higher duty-free limit is necessary, according to Free Business association.
According to the Association of Free Businesses, the current limit no longer reflects economic realities. So, the Ministry of Finance has called on to increase the duty-free threshold for postal items from GEL 300 to GEL
900.
The association introduced the existing threshold in 2009, but changes in the country’s economy (currency depreciation, inflation and the rapid growth of e-commerce) has made it outdated.
As the organization notes, the Georgian lari has depreciated by more than 38% against the US dollar since 2009. Meanwhile, consumer prices have increased by approximately 65-70% during the same period.
Also, calls from other groups to abolish the GEL 300 duty-free threshold are entirely rejected. Such a move would increase costs for consumers rather than protect local businesses, according to the Association of Free Businesses.
As the organization says, removing the threshold would not prevent money from leaving the country through online purchases, but would instead increase prices for consumers, while benefiting local intermediaries.
Also, as the association argues, abolishing the limit would mainly support large businesses. Meanwhile, it will negatively affect small businesses and individuals who rely on online shopping.
According to the organization, an increase would be an “economically justified and necessary decision, taking into account economic changes over the past 17 years.
Source Link