The Origins and Stages of Development of the Tax System in Georgia

The origins of Georgian statehood date back to the distant past. Taxation has an ancient history, and the very concept of a "tax" is rooted in the depths of centuries. Taxes were introduced at the dawn of civilization, emerging in response to a societal need. A formal tax system was established at a later stage, coinciding with the emergence of the state. Throughout the long history of Georgian statehood, taxes have served as an essential attribute of the Georgian state. In medieval Georgia, the peasantry constituted the primary tax-paying class. Following the restoration of Georgia's independence in 1918–1921, the state did not have sufficient time to establish an autonomous tax system. During this period, taxes were collected largely in accordance with the systems and regulations that had been established under Tsarist Russia. Everything changed following the Sovietization of Georgia in 1921; subsequently, as a result of the multiparty elections held on October 28, 1990, the national forces achieved victory in Georgia. On June 14, 1991, the Supreme Council of the Republic of Georgia adopted the law "On the Foundations of the Economic System of the Republic of Georgia," according to which the economic system of the Republic of Georgia was based on the principles of market economic relations. The tax reforms of 2010 in Georgia are significant. The new Tax Code entered into force on January 1, 2011.