Excise Becomes Electronic
09 February, 2012
Excise Becomes Electronic

Excising system is to become electronic in Georgia soon and supposed to cut down expenses for business.

On February 3, 2012Revenue Service (RS) of Georgia and the Swiss company SICPA Security Solutions SA signed an agreement on adoption of the electronic system of excise stamp management in Georgia.
The novelty is handy to both Revenue Service and business alike as makes things simpler from many points of view. The system enables the Revenue Service to control production and turnover of

any production of any company instantly in on-line regime. Moreover, the system helps to define whether or not the product is original or falsified.
On the other hand, on-line system spares business from burdensome paper-work related time and expenses.
“It was in line with the RS interests to adopt electronic system of excise marking that accordingly makes available electronic registration of excise taxes in order to have modern technologies in this field too, which will enable us to impose an immediate control on identification which company produced what and how much product entered the market,” Jaba Ebanoidze, Head of Revenue Service, said during the signature event.”This is an effective control tool and also consumers can find out whether or not certain product is a counterfeit.”
According to RS, the new excising system enables both paper and immediate marking of excise as well as non-excise goods; creation of unified centralized system of data management; getting information on both locally produced and imported goods in real time; control/monitoring of marked product turnover at consumer market, registration and reduction of producing defects in local enterprises; protection of consumers from falsification.  
RS announced competition for Excise Stamp Management Electronic System Adoption in November of 2011 and seven companies participated in it. The Swiss SICPA Security Solutions SA won the competition as is met the competition terms completely. The system offered by the winner company implements marking through a unique code imprinted either on a stamp or goods. Product circulation of the production line is supervised by special equipments produced by the Swiss company and they implement identification and marking of goods, as well as quality control of stamps and activation of the stamp’s unique code in the data base.   If any defect is revealed during the quality control the defected product automatically is removed from the production line that eases registration of production flaws to entrepreneurs and insures uninterrupted production process. 
According to Ebanoidze, installation of the special electronic marking machines will be free of charge for business, and the price of excise stamp depends on the product type.
For example, costs for marking of tobacco and bear/alcohol drinks differ. Besides, the cost depends on production capacity of an enterprise. The high production capacity enterprises will adopt electronic marking that spares an entrepreneur form extra costs.  Comparatively low productive capacity enterprises will continue marking by paper stamps. Importers who used paper excises up to day can go ahead with it too.
According to Ebanoidze, the marking cost will be fixed EUR 5 per 1000 product units that is by 2-3 folds cheaper compared to the region and the EU countries.
Levan Kalandadze, an economic analyst, like the electronic excising idea as a whole for he expects it should ease life to business. He just fears that some technical mistakes can create difficulties on the first phase but the system will get smoother gradually, he believes.
“Transportation and logistics of paper stamps was quite burdensome to companies, the electronic format will cut down costs by all means,” Kalandadze said.   
Up today Georgian revenues service excised only alcohol and tobacco product however it plans to excise lemonade and mineral waters too in future. Government works on a legislative initiative to this end. The decision was made for increased risks in lemonade and mineral water production recently.

Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange