Parliament resumed discussion of a constitutional amendment binding the government to hold a referendum if it decides to increase taxes or to introduce a new tax.
The draft amendment was discussed on November 4 by the parliamentary committee on legal affairs.
The proposed draft has already been passed by the Parliament with its first reading on December, 2009, but discussion of the proposal was shelved since then.
The proposal, which requires to be passed with second and third reading, is binding the government to hold a referendum if it decides to increase income tax; profit tax; value added tax and customs tax or if the government decides to introduce a new tax.
The draft, if passed, will go in force together with the recently passed major constitutional amendments, i.e. after the next president, elected in October 2013 election, is sworn in.
The proposal is part of a package known as Act of Economic Liberty voiced by President Saakashvili in October, 2009.
The Act of Economic Liberty, which has yet to be discussed by the Parliament, proposes to set maximum ratio of budgetary expenditures to GDP at 30%; budget deficit – at maximum 3% of GDP; and maximum of 60% of debt-to-GDP ratio. The proposal, which President Saakashvili said in September would be discussed this autumn, also restricts the government’s right to introduce additional new licenses and permits.