Khadjimba: We need to remove restrictions from business, rid it of excessive and intrusive monitoring and verification

President Raul Khadjimba received representatives of the Abkhazian business.

Sukhum. December 25. Apsnypress. Full text of the President's speech.
 
 "Dear colleagues!
 
 It brought together the largest taxpayers of our state. I thank you for the acception of my invitation. I also want to thank you for your contribution to the economy of our country, you as the leaders of the largest companies are the heads of the budget-enterprises.
 
 Initiated reforms have allowed us to form a completely new budget for 2016 - a budget with an increase of its own income and the expenditure almost doubled. For the first time we are talking about the budget development, which will allow us to finance our own expense projects of small and medium businesses for the program in the amount of 300 million rubles. Initiated reforms are good basis for further progress.
 
 One of our main tasks in 2016 is the formation of points of growth, ensuring financial transparency, the output of the shadow economy, fair payment of taxes by all participants of economic activity in the Republic of Abkhazia.
 
 We know that the percentage of collected taxes and fees in the amount of our gross national product is less than 5 percent. For comparison, in Russia and the countries of the Organization for Economic Cooperation and Development, the figure is over 35 percent. This means that virtually all of the tax base of Abkhazia is in the shade.
 
 At the same time, we will create the most favorable conditions for development of small and medium-sized businesses, the formation of a class of entrepreneurs and owners. We will create tax incentives for start-ups, actively develop the concessional lending instruments, to reduce administrative barriers. It is necessary to remove restrictions from most businesses, save it from the excessive and intrusive monitoring and verification. There should not be regular inspections.
 
 In the past year we have developed laws "On Currency Regulation and Currency Control", "On the prevention of money laundering and terrorist financing", "On Combating Corruption", a new law "On Value Added Tax".
 
  According to the "Value Added Tax": unfortunately, we were the only country in the world that charge the kind of tax from their manufacturers, and foreign-made goods when they are imported into Abkhazia are exempt from paying it. And the budget was deprived of income for hundreds of millions of rubles.
 
 We are ready for further major reforms, such as reform of the Law "On Accounting", the introduction of modern technologies in the field of electronic document management, reforms in banking and insurance, the further strengthening of anti-corruption legislation and legislation in the field of investment activity, reducing the number of inefficient taxes.
 
  By my order was established a working group on the optimization of taxes, fees and other mandatory payments. Our main goal - to increase the number of taxes to 10-12, make the process of paying taxes simple, transparent and automated.
 
 This year, the Center for Strategic Studies under the President of the Republic of Abkhazia has developed and presented a "Strategy of socio-economic development of the Republic of Abkhazia until 2025". Goals and objectives identified. The necessary volume of investments is also identified. It is important to develop together with the heads of large companies, with people who have extensive practical experience, market mechanisms, prioritize those or other steps that will allow us to successfully implement the strategy of socio-economic development of the Republic of Abkhazia.
 
 We will provide full support to an important and priority investment projects. This, in turn, will contribute to the introduction of modern technologies in all sectors of the economy and allow Abkhazia profitable and successful participation in the Eurasian integration process.
 
 Only together we will develop and implement new approaches to ensure the safe and sustainable development of our country for the future.
 
 I would like to hear from you what else needs to be done to support the business and its competitiveness, sustained economic development, the formation of a strong entrepreneurial class. What mostly impedes the development of our country, what is in the first place, we need to pay attention to?
 
I would be grateful for a frank and interested discussion".