The excise tax rate on tobacco products in Georgia is set to increase starting January 1, 2025. This adjustment was approved by the single-party parliament led by Georgian Dream in December 2024.

Under the revised rates, the excise tax on cigarettes will rise by 20 tetri, reaching 1.90 GEL, while the excise tax on heat-not-burn tobacco products will increase by 15 tetri, amounting to 1.85 GEL.

According to the explanatory note accompanying the legislation, the increase in excise taxes is projected to generate an additional 77 million GEL in revenue from cigarette excise taxes and 5.5 million GEL from heat-not-burn tobacco excise taxes, resulting in a total revenue increase of 83.5 million GEL for the 2025 budget.

In 2024, the tobacco excise tax contributed approximately 1.1 billion GEL to the state budget. Following the implementation of the revised rates, this figure is anticipated to rise to 1.2 billion GEL in 2025.