The government has revised its initial decision and no longer considers imposing value added tax (VAT) on universities, Kakha Baindurashvili, the finance minister, said on June 28.

The proposal to impose VAT on universities was part of a draft of new tax code.

Baindurashvili said after meeting with lawmakers from the ruling National Movement party, that as a result of recent public discussions on the new tax code it became clear that imposing VAT on universities would have had negative impact on further development of the sector.

Meanwhile, Education Minister, Dmitry Shashkin, who met with number of university rectors on June 28, said that it was decided to start working on a draft law, which would envisage setting up of endowment funds for the universities.