Georgia’s tax expenditures reached GEL 6.8 billion in 2025, up from GEL 6.6 billion in 2024, according to an analysis published by the Ministry of Finance. The figure represents revenue the state budget did not collect due to tax exemptions and other relief measures.
Tax expenditures amounted to 6.6% of GDP in 2025. Value-added tax (VAT) exemptions accounted for approximately 92% of the total, equivalent to 6.06% of GDP, while the remaining 8% came from profit and income tax relief.
Education benefited the most from VAT exemptions, accounting for GEL 1.04 billion, or around 1% of GDP. The healthcare sector received an estimated GEL 766.1 million in VAT-related tax relief, equivalent to 0.73% of GDP, while agriculture accounted for GEL 544.1 million, or 0.52% of GDP.
The report identifies education, healthcare, agriculture and pharmaceuticals as the main sectors benefiting from VAT-related tax expenditures.
