The excise tax of the imported liquefied gas may become 450 GEL. The Parliament of Georgia has already launched a discussion of the issue.
Following the bill, the liquefied gas import will subject to one mode instead of the complicated, two-phase taxation.
The bill of amendments aims to eliminate the errors in the current legislation on liquefied gas imports.
One of the largest importers, SOCAR Georgia Petroleum, has assessed the alleged change in the liquefied gas imports.
The Company Director Levan Giorgadze said that the bill is 'completely acceptable' as he is 'well aware of it.'
In his words, during an excise tax increase on fuel, it did not take place on LPG, and the latter was taxed improperly, that led to unfair competition in the vehicles' market.
He says the import price depends on the prices in the international market.
"Thus, it is difficult for me to specify any particular price,'' he said.
In his words, the demand for liquefied gas is increasing in Georgia, as the imports increased by 52% in 2020.
The Union of Oil Importers has confirmed an increased demand for this type of fuel in Georgia. According to them, last year, the import of liquefied natural gas (LPG) amounted to 26.9 thousand tons, which is 6.9 thousand tons or 34.5% more than in 2018 (20 thousand tons). According to the business association, there are currently more than 7,000 vehicles in Georgia that are active consumers of liquefied natural gas. Recently, the number of service stations for such vehicles has increased significantly; there are already more than 200 units.
The Union of Oil Importers has long been talking about the need to recognize LPG as one of the types of oil products and establish mandatory quality standards for liquefied gas, as is the case with gasoline and diesel fuel. According to the business association, the EU standard for liquefied natural gas is EN-589.
Let us remind that the excise tax on liquefied gas may increase from 300 to 450 lari, although the 300-lari commercial tariff for liquefied gas will not change. The opposition demands a reduction in the excise tax on fuel.
For reference, the Union of Oil Importers notes that Georgia imports liquefied gas under code 2901, which is not subject to excise tax and is used in the local market as fuel for cars. People in business point out that no standards apply to the product.
Recall that the head of the Committee on Oil, Oil Products and Gas of the Business Association of Georgia, Shavleg Mishveladze, has long been talking about a "black hole" in the liquefied gas market. According to him, the problem is that when importing LPG to Georgia, a two-stage taxation model is used - 120 lari for each ton of product at the time of customs clearance, and an additional 180 lari must be paid after the delivery of liquefied gas to the consumer. The Business Association of Georgia (BAG) states that there are problems with the administration at the second stage of taxation, and this amount is not fully deducted to the country's budget.
Bela Gelashvili
News Author