The “Free Business Association” proposes reducing the excise tax on fuel

The "Free Business Association" has released a statement responding to the position of the Prime Minister of Georgia, Irakli Kobakhidze. The Prime Minister called the idea of reducing the excise tax on fuel speculation, with which the association disagrees, stating that making fuel cheaper is not populism. Interpressnews+1

According to the association, temporarily halving the excise tax rate will reduce the price of fuel by 25 tetri, which will help alleviate the financial burden on the population and reduce the pressure on businesses. According to the organization's calculations, the budget will lose a maximum of 250 million GEL as a result of this change, although they note that it is possible to compensate for this amount, for example, at the expense of revenues received from fines on individuals. Interpressnews

The "Free Business Association" calls on the government to reconsider its position and points to the experience of other countries. Specifically, according to the association, Germany and Spain reduced fuel prices through tax breaks, while Poland reduced the VAT rate on fuel from 23% to 8%. Interpressnews