Georgia’s excise tax will increase by 85 tetri ($0.31) per pack for imported cigarettes, reaching 2.75 GEL ($1.02) per 20-cigarette pack beginning January 1, 2026. Outlined in a draft law proposed by Georgian Dream MPs, taxes on locally produced cigarettes will be reduced to 1.30 GEL ($0.48) per 20-cigarette pack for the first 35 million packs annually, and 2.75 GEL thereafter. Also, the ad valorem component for local production drops from 30% of retail price to 15% for the first 35 million packs, and 20% for production exceeding that amount.
The legislation aims to protect and promote local tobacco production, increase competitiveness, and stabilize market share while maintaining fiscal and public policy objectives. Officials highlight that the new structure is expected to create a healthier competitive environment, support domestic producers, and sustain budget revenues.
