The excise tax rate on tobacco products will increase from January 1, 2025. The corresponding change was approved by the Georgian Dream’s single-party parliament in December 2024.
With this change, the excise tax on cigarettes will increase by 20 tetri, which will reach 1.90 GEL, while the excise tax on heat-up tobacco is planned to increase by 15 tetri, as a result of which it will reach 1.85 GEL.
According to the explanatory note prepared by the authors of the bill, the excise tax increase will bring 77 million GEL more revenue from cigarette excise tax to the 2025 budget, and 5.5 million GEL more revenue from heat-up tobacco excise tax, which means a total increase in tax revenue of 83.5 million.
In 2024, a total of 1.1 billion GEL in tax revenue was brought into the budget from tobacco excise, which is expected to increase to 1.2 billion GEL next year, taking into account this change.
