Parliament has approved on first reading, under an accelerated procedure, amendments to the Tax Code of Georgia that would significantly alter excise duty rates on both imported and domestically produced cigarettes. The bill passed with 77 votes in favor and one against, signaling broad support within the legislature.
Under the proposed changes, locally produced cigarettes, up to 35 million packs, will be subject to a fixed excise duty of 1.3 GEL and a 15% ad valorem tax. For imported cigarettes, the fixed excise rate will rise sharply from 1.9 GEL to 2.75 GEL, while the ad valorem component will be reduced from 30% to 20%. The new structure will also apply to more than 35 million packs of domestically produced cigarettes.
Presenting the bill, Shota Berekashvili, Chairman of the Economic Policy Committee, stated that the primary objective is to support domestic manufacturing while ensuring a fairer and more balanced excise framework for importers. He emphasized that the measure aligns with the government’s declared excise policy and is expected to generate a positive fiscal impact through increased budget revenues.
If adopted in its final form, the amendment will further differentiate taxation between imported and locally produced cigarette products, reinforcing the government’s strategy of boosting domestic output while adjusting revenue streams through targeted excise reforms.
