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Tax Gap of Heated Tobacco Products in Georgia
Prior to 2018, heated tobacco was not defined in the tax code and was taxed at the same rate as “pipe tobacco,” with a specific excise based on weight.
The excise tax law was amended on December 28th, 2017 (Law of Georgia No. 1935) to include heated tobacco in a separate category of tobacco products. Heated tobacco is subject to a mixed excise system with an ad valorem excise based on the retail sale price and a specific excise based on the number of sticks. This is the same tax rate that applies to cigarettes. The law went into effect January 1st, 2018.
In late 2019, new legislation amended the tax code to increase the ad valorem excise. As of January 1st, 2023, both cigarettes and heated tobacco sticks have been subject to a mixed excise system that includes a specific excise tax of GEL 1.7 per pack of 20 sticks (unchanged since 2017) and an ad valorem excise of 30% of the retail sales price (increased from 10% in 2022 and before).
Sources
- Tax Code (as amended Dec 28, 2017), Article 188 and Notes.
- Tax Code (Consolidated laws, Dec 2020), Article 188 and Notes.
Last updated Sept. 1, 2023