The Ministry of Finance has published an updated draft budget for 2024. According to the document, income tax will increase by GEL 700 million from the next year, and it will reach GEL 21.9 billion. The rise in income tax is linked to a gambling tax rate raise and better-than-expected results for the banking sector.
The 2024 Consolidated Budget Tax Plan:
1) The forecast rate of income tax was determined at GEL 6,885.3 million, including the share of the state budget amounts to GEL 6,334.5 million, while the share of the autonomous republics - GEL 550.8 million. Compared to the first version of the budget, the rate of income tax has increased by GEL 180.0 million, which is related to the increase of the withdrawal rate up to 5% from the gambling account;
2) The forecast rate of profit tax was set at GEL 2,583.0 million, which was an increase of GEL 520.0 million compared to the first version of the budget. Of the increased amount, GEL 300.0 million is the additional amount to be paid by the financial sector in 2024 (within the existing legislation), and GEL 220.0 million is the additional income received by changing the taxation rates of gaming business;
3) The value-added tax forecast was determined at GEL 9,121.4 million, including the state budget's share of GEL 7,388.3 million, and the share of municipalities - GEL 1,733.1 million (unchanged compared to the first version of the budget project);
4) The estimated rate of excise duty was determined in the amount of GEL 2,365.1 million (unchanged compared to the first version of the budget project);
5) The forecast rate of import tax was determined at GEL 161.2 million (unchanged compared to the first version of the budget project);
6) The property tax forecast is GEL 650.0 million (unchanged compared to the first version of the budget project);
7) The forecast rate of other taxes was determined at GEL 176.3 million (unchanged compared to the first version of the budget project).
The government will increase the rate imposed on gambling business profits from 10% to 15%. There will also be a change regarding the withdrawal of money with players now paying 5% instead of 2%.
