A New Package of Assistance for Businesses and Citizens in the Context of COVID-19

  1. Caring for citizens - total program budget: 545 million GEL. Total number of beneficiaries: more than 500,000 individuals (excluding utility subsidies)

    • Utility subsidies: We will subsidize utility bills(corresponding to the consumption of up to 200 kWh / m3) over a period of four months(November-February). Estimated number of beneficiaries: 1.1 million households. Budget: 270 million GEL;
    • 1,200-GEL assistance for individuals who have lost their employment: Formal sector employees who will temporarily lose their jobs will receive assistance in the amount of 200 GEL for six months starting from January 2020. Estimated number of beneficiaries: 125,000 individuals. Budget: 150 million GEL.
    • 300-GEL one-off assistance: One-off compensation in the amount of 300 GEL will be issued to individual entrepreneurs and persons employed in the outlets or facilities whose operation will be suspended in December and January as a consequence of the additional restrictions. Estimated ; number of beneficiaries: 100,000. Budget: 30 million GEL.
    • 600-GEL assistance for families scoring between 65,000 and 100,000 social points: Assistance in the amount of 100 GEL (on average per month, depending on the number of family members), to be provided for six months starting from January. Estimated number of beneficiaries: up to 72,000 families (220,000 individuals). Budget: 55 million GEL;
    • 600-GEL assistance for families scoring between 0 and 100,000 social points that have three or more children under the age of 16: Assistance in the amount of 100 GEL, to be provided for six months (January-June). Number of beneficiaries: 24,000 families. Budget: 15 million GEL.
    • 600-GEL assistance for disabled persons under the age of 18 and persons with severe disabilities: 100 GEL per month to be provided for six months. Number of beneficiaries: 43,000 individuals. Program budget: 27 million GEL.
    • Possibility of deferment of bank loans for persons employed in the outlets or facilities whose activities will be restricted.

     

     

  2. Business support package: 515 million GEL

    • Income tax concessions: Persons with a salary of up to 1,500 GEL will be exempt from income tax on up to 750 GEL in December-May 2021. Estimated number of beneficiaries: 33,000 companies and 425,000 employees. Budget: 260 million GEL.
    • Property tax concessions for the tourism sector: The tourism sector (hotels, restaurants, and properties involved in similar activities) will be exempt from property tax in 2021. Budget: 45 million GEL;
    • Tax write-offs for four months of deferred income tax payments from 2020: Deferred income tax payments in the tourism sector (hotels, restaurants, and properties involved in similar activities) from before 1 December 2020 will be written off. Budget: 20 million GEL;
    • Interest subsidies for the bank loans of hotels will continue; additionally, interest subsidies will be provided for the bank loans of restaurants over a period of six months. Estimated number of beneficiaries: 3,700 companies;
    • Microgrant program: A microgrant program for entrepreneurship is underway, which will fund thousands of new business projects (2020 program). Budget: 40 million GEL;
    • Credit-Guarantee Fund: 100 million GEL in 2021;
    • Bank loan deferment for companies whose operation will be restricted in the December-January period.

The total budget of the new package amounts to 1.1 billion GEL.