On October 17, the APRC’s Rati Kochlamazashvili presented the results of a study of Value Added Tax (VAT) Exemption Impact for Increasing the Competitiveness of the Georgian Dairy Sector to dairy sector stakeholders, including farmers, dairy processors, and associations, as well as representatives of government bodies and parliament. The presentation took place at the Business Association of Georgia (BAG) and the study was conducted with financial support from the Land O’Lakes Venture 37 and the United States Department of Agriculture (USDA).
The objective of the study was to estimate the potential impact of VAT exemption on dairy products to increase the competitiveness of the Georgian dairy sector. The study assessed the potential impact of VAT exemption on the state budget, farmers and dairy products’ producers as well as consumers. The research team developed recommendations for VAT exemption policy implementation in order to contribute to the increase in competitiveness of the Georgian dairy sector.
The presentation was followed by a valuable discussion, which showed the need for designing a more comprehensive policy for the development of the dairy sector in Georgia rather than solely focusing on one policy instrument, such as VAT exemption.
The ISET Policy Institute thanks the organizers of the presentation and is looking forward to contributing further to Georgia’s agriculture development, including a very important sub-sector in the form of dairy sector development.