About Civil.ge
Eng | Geo | Rus
Last updated: 10:55 - 1 May.'18
RSS
Mobile
Twitter
Facebook
Increase of Cigarette Excise Tax Planned
Civil Georgia, Tbilisi / 29 Jul.'13 / 20:27

Excise tax on cigarette will increase starting from this September, according to government proposal which was passed with its second reading by the Parliament on July 29.

Excise tax on a pack of filtered cigarette will increase from current GEL 0.6 to GEL 0.75 and on a pack of non-filter cigarette from current GEL 0.15 to GEL 0.2, according to draft amendment to the tax code.

First Deputy Finance Minister, Giorgi Tabuashvili, told lawmakers that the move would generate an estimated additional GEL 25 million or possibly GEL 26 million in tax revenues this year.

The government cites intention to cut the smoking rate as a reason behind its decision to increase the excise tax.

UNM lawmakers, however, argued during the debate in Parliament on July 29, that the government decided to turn to cigarette excise tax to, at least partly, compensate for revenue shortfalls.

“This proposal first and foremost aims at filling the gap in tax revenues. But projected GEL 25-26 million, which is expected from increase of this tax, will fail to cover the shortfall of GEL 247 million in tax revenues, which was posted in the first two quarters of this year,” said UNM MP Zurab Melikishvili, who chaired finance and budget committee in the previous parliament.

According to a policy brief by Tbilisi-based think-tank Economic Policy Research Center, analyzing budget performance for the first half of 2013, the state budget, hurt by economic slowdown, has suffered about GEL 265 million shortfall in targeted tax revenues in the first six months of this year.

UNM lawmakers also argued that the move might increase smuggling of cigarettes, but the deputy finance minister said risk of such development was “minimal”.

Latest News
01 May.'18 10:55
We Have Moved to a New Platform
Direct Your Bookmarks to https://civil.ge.
29 Apr.'18 03:54
Ruling Party Candidate Wins MP By-Elections
Givi Chichinadze will represent Vani and Khoni single-mandate constituency in the Parliament of Georgia.
28 Apr.'18 09:40
Polls Open for Vani and Khoni MP By-Elections
48,123 voters are eligible to cast their ballots in Vani and Khoni single-mandate constituency.
27 Apr.'18 17:23
State Dept’s Europe Affairs Point Man to Visit Tbilisi
Wess Mitchell will meet senior government officials and address the NATO-Georgia Public Diplomacy Forum.
27 Apr.'18 13:45
In Quotes: Georgian Politicians on Ex-PM Bidzina Ivanishvili’s Comeback
Bidzina Ivanishvili will be approved as the Georgian Dream party chairman at the upcoming convention.
26 Apr.'18 18:15
SG Jens Stoltenberg: Georgia NATO’s ‘Very Close’ Partner
The NATO Secretary General says Foreign Ministers meeting tomorrow will recognize the country’s progress.
26 Apr.'18 14:24
Ex-PM Ivanishvili to Chair Georgian Dream Party
Prime Minister Giorgi Kvirikashvili said Ivanishvili was ‘best equipped’ to add new dynamism to the party.
26 Apr.'18 11:12
Lawmaker Proposes Criminal Liability for ‘Insult of Religious Feelings’
The parliamentary human rights committee decided to set up a working group for scrutinizing the draft law.
25 Apr.'18 17:21
New Abkhaz Government Head Appointed
Gennady Gagulia has served as the Abkhaz “prime minister” twice - in 1995-1997, and 2002-2003.
25 Apr.'18 14:43
Watchdog Improves Georgia’s Press Freedom Ranking
None of the countries of the former Soviet Union (except the Baltics) are ranked ahead of Georgia.

About Civil Georgia
Civil.Ge © 2001-2025, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
11