Home / Business / Excise Tax on Beer might not Grow from 1 January

Excise Tax on Beer might not Grow from 1 January

It is possible that the government’s intention to increase the excise tax on beer from January 1 will be reviewed – the businessman Temur Chkonia told “Commersant” after a meeting with the Minister of Finance of Georgia.

According to him, at the meeting the businessmenopposed against the planned doubling of the excise duty.

“The Minister  promised us that the excise duty will not grow at least in the off-season, ie from 1 January – in order not to create unnecessary problems to producers. It turns out that the excise tax in Georgia is higher than in Europe. When it comes to the implementation of commitments to the EU, then excise duty  that is not greater than in Europe should be introduced. And generally it is wrong  to increase an excise duty  only to replenish the budget . If the budget does not grow, who will answer for this? As a result, the business will lose, and someone should be held accountable, “- says Chkonia.

According to the Minister of Finance of Georgia Nodar Khaduri, the government is ready to continue active consultations with the business on the draft amendments to the Tax Code, which is currently considering in a Parliament.

“Our goal is  to make such a decision that is acceptable both for the state and business” – the ministernotes.

On January 1, the government plans to increase the excise tax on all types of alcohol, except wine and tobacco. Businessmen also categorically oppose this decision believing that the growth of excise duty will automatically lead to an increase in price, and this will create problems both to consumers, businesses and the state.