The Georgian government plans to adjust its 2025 budget, reducing the profit tax forecast by GEL 190 million due to lower-than-expected profits in the banking sector. First Deputy Minister of Finance Giorgi Kakauridze explained that banks’ 2024 profits fell short of projections, causing advance tax payments to exceed actual liabilities.
Overall, the government expects to collect GEL 21.94 billion in taxes in 2025, GEL 55 million more than the initial plan, thanks to higher income tax mobilization. Key updates to the tax revenue forecast include:
- Income tax: GEL 7,549 million (+GEL 180 million)
- Profit tax: GEL 2,880 million (-GEL 190 million)
- VAT: GEL 8,136 million (unchanged)
- Excise duty: GEL 2,650 million (unchanged)
- Import duty: GEL 145 million (-GEL 5 million)
- Other taxes: GEL 580 million (+GEL 70 million)
The explanatory note also mentions that while the original budget assumed 6% economic growth, the revised draft anticipates 7.2% growth for 2025.
