"Ad Valorem and Fixed Excise Tax to Be Equalised in the Long Term"
BM.GE
28.12.18 18:59
• 1108
The minister of Finance Ivane Machavariani spoke about the details behind the tripling of the Ad Valorem tax on tobacco; according to the minister, from the fiscal perspective the increase of excise tax rates is important for the Ministry of Finance but he also mentioned that both the Ad Valorem and fixed excise tax will be equalized in the long term. “Excise is indeed important. In this case, the fiscal impact we are expecting from this is very crucial for us. At the same time, we understand that there are some concerns in the parliament that some companies, including local producers, might experience problems as a result and do not want to hamper their work. At this stage, I believe that for us (the Ministry of Finance) it is important that the excise is increased, which is indeed happening. I believe that this is potentially a mid-term step and in terms of a long term solution I believe that in the end both ad volarem and fixed taxes will be equalized” – explains Ivane Machavariani.
