Applying the Estonian model for profit taxation (insurance companies will not be subject to income tax on reinvested profits) will boost development and growth, according to the General director of GPI Holding, Paata LOMIDZE, reported Caucasus Business Week.

"The Estonian model should affect the insurance sector, too, since unlike developed countries, insurance in Georgia is rather poorly developed. It needs an additional impetus, such as exemption from paying tax on reinvested profits. This will save a lot of money that will be spent on the long-term projects," LOMIDZE explained.