The Parliament of Georgia, dominated by the “Georgian Dream” party, has approved in the first reading, through an accelerated procedure, a bill amending the Tax Code of Georgia. The vote was 77 in favor and 1 against. The amendment envisages changes to the excise rates on cigarettes.
According to the bill, the fixed excise rate on imported cigarettes will increase from 1.9 GEL to 2.75 GEL per pack, while the ad valorem rate will decrease from 30% to 20%. The ad valorem tax is calculated as a fixed percentage of the value of goods, services, or assets.
For locally produced cigarettes up to 35 million packs, a fixed excise of 1.3 GEL per pack and a 15% ad valorem excise will apply. However, for locally produced cigarettes exceeding 35 million packs, the excise will match that of imported cigarettes.
According to the bill’s presenter, Shota Berekashvili, the main goal of the changes is to support local production and achieve a positive fiscal effect in terms of revenue for the state budget.
Under the proposed legislation, the excise increase will take effect on January 1, 2026.