The performance of Georgia’s 2025 nine-month budget reveals significant shortfalls in several major taxes, despite an overall slight surplus in total tax revenue, - according to the Treasury of the Ministry of Finance.
Key Tax Shortfalls
- Profit tax: fell behind the plan by 211 million GEL
- Value-added tax (VAT): underperformed by 101 million GEL
- Excise tax: lagged by 22 million GEL
- Import tax: missed the target by 6 million GEL
- Overperforming Taxes
- Income tax: exceeded the plan by 71 million GEL
- “Other Taxes” category: significantly overran expectations by 289 million GEL
Taking both underperformance and overperformance into account, the overall tax revenue for the nine months exceeded the plan by 21 million GEL, reflecting a marginal positive outcome despite notable shortfalls in key areas.
The report underscores the challenges in mobilizing major tax streams, particularly profit and VAT, which are critical for funding government expenditures.
