In the first half of 2025, Georgia's state budget received GEL 10.5 billion in tax revenues, achieving 100.5% of the overall tax plan. However, beneath the surface, revenue from most major taxes, excluding income tax and “other taxes”, fell short of projections, resulting in a GEL 217 million shortfall compared to the six-month plan.
Breakdown of Tax Revenue Performance (January–June 2025):
- Value Added Tax (VAT): GEL 3.76 billion — GEL 48 million below target
- Profit Tax: GEL 1.44 billion — GEL 97 million below target
- Excise Tax: GEL 1.18 billion — GEL 68 million below target
- Import Tax: GEL 69 million — GEL 4 million below target
- Income Tax: GEL 3.71 billion — GEL 59 million above target
- Other Taxes: GEL 361 million — GEL 211 million above target
According to the Ministry of Finance, the sharp increase under “Other Taxes” is partly due to the accounting method—revenues under this category are recorded up to the 15th of the following month, as companies finalize their tax declarations.
Interestingly, the shortfall in key tax revenues comes despite stronger-than-expected economic growth. The 2025 state budget was based on an annual growth forecast of 6%, while actual economic growth in the first half of the year reached 8.3%, exceeding the forecast by 2.3 percentage points.
This discrepancy is notable given that VAT, one of the underperforming taxes, is closely tied to real economic activity. For comparison, in the first half of 2024, the budget outperformed projections by 5.5%, collecting GEL 9.9 billion in tax revenues. In 2025, however, despite higher economic growth, there is no similar surplus, and several core tax categories are underperforming.
The figures suggest potential inefficiencies in tax collection or structural changes in the economy affecting taxable activity. The Ministry has not yet provided a detailed explanation for the lag in major tax categories.
