PM Kobakhidze: Income tax revenue rose from GEL 1.76bn in 2012 to GEL 8.26bn last year, proving economic growth directly impacts population

“In 2012, our population paid GEL 1 billion 764 million in income tax. By 2020, this figure reached GEL 3 billion 326 million, and last year it stood at GEL 8 billion 261 million,” Prime Minister of Georgia Irakli Kobakhidze announced in Parliament while presenting the annual report on the implementation of the government programme.

According to the Head of Government, these figures demonstrate that the country’s rapid economic growth is directly reflected in the population’s finances.

“We also have the medium-term forecast of the International Monetary Fund, according to which, between 2026 and 2031, Georgia will have the highest economic growth rate both in the region and across Europe. This forecast is based on specific indicators and the trends our country has maintained over the past five years.

The question is often raised as to how much this rapid economic growth actually benefits the population. One of the best indicators of this is the volume of income tax paid. Income tax is paid by approximately one million of our citizens, essentially every employed individual. In 2012, our population paid GEL 1 billion 764 million in income tax. In 2020, this figure became GEL 3 billion 326 million, and last year it reached GEL 8 billion 261 million.

This means that the net income of our population exceeds GEL 33 billion after taxation. For comparison, the same figure stood at GEL 13.3 billion in 2020. Net population income has surged from GEL 13.3 billion to over 33 billion, whereas it was just GEL 7.1 billion back in 2012. This proves that the economic growth achieved by the country directly translates into tangible benefits for the population,” the Prime Minister stated.