Georgia Parliament Considers Halving Tobacco Consumption Tax Rate

The Georgian parliament is considering a half reduction in tobacco consumption tax to stimulate the industry, increase competitiveness, and reduce illegal tobacco imports. The revised Taxation Law covers a wide range of tobacco products, including raw materials, waste, hookah tobacco, homogenized tobacco, chewing tobacco, and nasal snuff. The proposal aims to stimulate industry development, increase competitiveness, and reduce illegal cigarette imports. The proposal also highlights the challenges faced by the tobacco industry, such as complex processing technology, a lack of skilled talent, and the increasing prevalence of smuggled tobacco. The revised proposal also aims to reduce annual tax revenue by approximately 25 million lari (9.43 million USD). The increase in consumption taxes has led to nearly doubled cigarette prices in Georgia. The proposal is supported by the parliamentary majority.