  The topic under study is of crucial importance, especially for developing
countries. The aim of the present paper is to study the problems in revenue
administration in terms of tax revenue in Georgia and analyze foreign
experience in that respect. The main question arises here - What kind of tax
rates should be implemented to be able to perform both functions of the fiscal
and stimulating one. Liberal method of revenue seems an attractive one for
taxpayers. According to the economic situation in Georgia, the best solution is
to use the liberal method. This will help business to develop and people to
find jobs. Taxation system will also benefit from that. Tax rate in Georgia
amounts to 15% and is the same for everyone, regardless the size of the
business. The taxation system is regarded to be proportional. As for the
American and European countries, taxes there are progressive. I think the same
practice should be implemented in Georgia, and not only in case of taxation.
