The Parliament deliberated for the I reading and expedited procedure the Draft Tax Code and approved it with 77 votes against one, envisaging the modification of the excise rate on cigarettes.

According to the draft, a fixed excise tax of 1.3 GEL and an ad valorem excise tax of 15% will be imposed on up to 35 million packs of locally produced cigarettes.

Additionally, the fixed excise rate on imported cigarettes will increase from 1.9 GEL to 2.75 GEL, while the ad valorem rate will decrease from 30% to 20%.
These changes will also apply to locally produced cigarettes exceeding 35 million packs.

According to the reporter, Shota Berikashvili, Chair of the Economic Policy Committee, the main objective of the amendment is to support local production and to establish a fair and balanced excise rate for cigarette importers—within the framework of the current declared excise policy—through an upward adjustment, ultimately generating a positive fiscal effect in the form of increased state budget revenues.