GNCC, based on applications submitted by “Media Development Fund,” “International Transparency Georgia” and “United National Movement” has examined video advertisement placed through the broadcasting nets of  TV Companies: “Studio Maestro” Ltd, “Imedi TV” Ltd and “Broadcasting Company Rustavi 2” Ltd regarding economic and tax reforms carried out by the government of Georgia.

The author organizations of the statement have considered, that an ad had signs of pre-election political advertising and due to this fact, have requested from GNCC to study and determine the status of an above-mentioned ad.

After examining an issue, the Commission has determined that an ad noted was placed through the broadcasting nets of TV Companies -“Studio Maestro” Ltd, “Imedi TV” Ltd and “Broadcasting Company Rustavi 2” Ltd with a status of paid advertising ordered by the Ministry of Finance of Georgia.

In accordance with the Organic Law of Georgia “on Election Code of Georgia” political/pre-election advertisement is an advertisement distributed by means of mass media of such content, which intends the promotion/hindering of electoral subject, where electoral subject is shown or his/her election sequence number and consists of signs of pre-election campaign or calls for referendum / plebiscite for or against the decision on an issue.

In the video ad, population is being informed about the economic growth oriented on tax changes ( relevant legislative changes on “Tax Code of Georgia”  came into forth on June 1 of the current year) – in case of re-investing  entrepreneur is completely exempt from profit tax, and in case of the import of fixed assets of added value taxable operations is exempt from the amount of VAT. It is also noted, that seizure of entrepreneur's bank account during tax disputes is only possible through the court’s decision, and tax examination is carried out solely by the tax authority and that an innovative start-up business program “Start-Up Georgia” has been launched.   No electoral subject, nor his/her election sequence number is being shown in the video, therefore, no identification of any electoral subject has been carried out, neither a display of any political party symbol.

In accordance with the Georgian law “on Broadcasting” an administrative body has an authority to purchase broadcasters services for the placement of a social ad within a scope of a length of time beyond the minimum level time frame defined by Article 65 of the same law for the purposes of placement of social ad/distribution of information of public importance and only in such instances, if it is defined aside by the separate article of its budget. In case, if the administrative authority is purchasing organization, the procurement shall be carried out in accordance with rules established by the Georgian law “on Government Procurement.”

An information distributed by the above-mentioned video advertisement, in accordance with an assessment of GNCC, contains information of public importance, thus, it is in compliance with the requirements of Paragraph 2 of Article 66¹ of the Georgian law “on Broadcasting.”