The Government of Georgia plans to raise all tax brackets by 2017, thereby generating a projected 518 million GEL in revenue. This information was conveyed by the policy change package of the 2017 budget proposal, which also involves the introduction of higher excise taxes on car oils, which will now be twice as high. Excise taxes for 1 ton of car oils will now be 800 GEL.
According to the government of Georgia, raising excise taxes on the products below will result in increased revenue: tobacco goods alone will provide 190 - 200 million GEL. Gars - 45 million GEL, gasoline, oil and other car products - 200 million GEL.
Next year, the government is counting on a total generated revenue of 681 million lari, which is 300 million GEL less in comparison to 2016.
The Former President of National Bank of Georgia, Giorgi Kadagidze, thinks that the changes are unclear from an economic perspective. Kadagidze thinks that the motive of the government is unclear, given that it will reduce taxes on industry which only pays taxes on profits, while private citizens will lose income due to taxes.