Economy of Georgia

Government of Georgia Doubles Excise Taxes on Car Oils

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Photo: carlube.co.uk

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.

“From January 1, excise taxes for 1 ton of gasoline will become 500 GEL instead of 250. 1 ton of diesel - 400 GEL instead of 150 GEL, 1000 cubic meters of natural gases for cars - 200 GEL instead of 80, whereas car oils - 800 GEL instead of 400”, says the policy change package.
 

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.

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