Excise tax on tobacco products increased in Georgia

Amendments to the Tax Code of Georgia, implying an increase in excise duty on tobacco products, came into force - the changes affected both cigarettes and icos sticks.

The reason for the excise tax increase was a decrease in demand for cigarettes and the outdated value of the excise tax, which has not changed since 2016.

According to the amendments, excise duty on cigars increased from GEL 1.9 to GEL 2.1 per unit, on cigarillos from GEL 2.2 to GEL 2.4 per 20 units, and on cigarettes from GEL 1.7 to GEL 1.9 per 20 units.

In addition, excise duty on products containing tobacco or reconstituted tobacco (Aikos sticks fall into this category) increased from GEL 1.7 to GEL 1.85 per 20 pieces.

And the excise duty on products containing nicotine and not falling under the other categories increased from GEL 1 to GEL 1.2 per millilitre.

According to the forecasts of the authors of the amendments to the Tax Code, only the increase in excise duty on cigarettes will allow the budget to receive about 65.2 million GEL additionally.

Another 4.5 million GEL will be received by the budget from the increase of excise duty on sticks for icos. And GEL 1.9 million from the increase in excise duty on other categories.

Reprinted from https://sputnik-georgia.ru/