Parliament Approves Increase of Tobacco, Alcohol Excise Tax

Parliament approved on December 11 with its third and final reading legislative amendment envisaging increase of excise tax on tobacco and some alcoholic beverages starting from January, 2016.

The government expects additional of GEL 90 million in tax revenues as a result of planned excise tax increase.

Excise tax on a pack of filtered cigarettes, according to the proposal, will be increased by 20 tetri to GEL 1.1, and on unfiltered cigarettes by 5 tetri to GEL 0.3. In addition, retail sales tax rate will double to 10%. According to the government’s plan excise tax on tobacco will increase annually for next eight years.

According to the amendment, excise tax on vodka will be increased from GEL 6 to GEL 10 per liter starting from 2016. Excise tax on liter of whisky, gin and rum will go up from current GEL 10 to GEL 15; tequila – from GEL 8 to GEL 10 per liter; non-denatured ethyl alcohol and spirits – from GEL 5.2 to GEL 10 starting from next year.