Justice Ministry Approves Electricity Tax Increase

(Tbilisi, August 15, 2003, Civil Georgia) – Justice Ministry approved today proposal of the National Energy Regulatory Commission to introduce differentiated electricity tax.

According to the proposal, Tbilisi residents who consume 100 kilowatts of electricity per month have to pay 12.18 Tetri (5.7 Cents) per kilowatt; those who consume from 100 up to 200 kilowatts will pay 13.7 Tetri (6.4 Cents); those consuming from 201 to 400 kilowatts 15.1 Tetri (7 Cents); and residents consuming more than 400 kilowatt will pay 16.8 Tetri (7.8 Cents) per kilowatt of electricity. The current electricity tax in Tbilisi is 12.18 Tetri.

The Justice Minister Roland Giligashvili was against of the proposal. At the government’s meeting on August 13 he said that increase of electricity tax contradicts decision of the Georgian Constitutional Court, which ruled positively on Labor Party’s appeal last December demanding to obstruct electricity tax increase.

However Giligashvili had to approve the proposal after the State Minister Avtandil Jorbenadze and President Shevardnadze’s categorical demand.

Increase of electricity tax is one of the recommendations of the International Monetary Fund.

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