The Ministry of Finance reports, that the total amount of tax break made up GEL 3.8 billion in 2022, 90% of which accounted for VAT.
Value Added Tax in Georgia totals to 18%. The following major sectors are exempt from VAT: healthcare; pharmacy; education; gambling, several operations with motor cars and agriculture. As a result of tax breaks in those sectors, in 2022 the budget did not receive tax revenues of GEL 3.4 billion.
Sectors By Tax Break In 2022 (the budget did not receive GEL 1 Million):
Health care - 484 million GEL;
Education - 431 million GEL;
Agriculture - 378 million GEL;
Pharmacy - 321 million GEL;
Motor Cars - 84 million GEL;
Other sectors Total: 1.63 billion GEL.
According to the report, the leading beneficiaries of these tax breaks are the healthcare and pharmaceutical and education sectors. The biggest beneficiaries of these sectors are agriculture, where the main suppliers are small and medium-sized enterprises, while the health and pharmaceutical sectors are dominated by large holdings.
