Georgia Increases Cigarette Prices

Source from:  Azer News  09/05/2013

Georgia increased excise tax on tobacco products from September 1.

According to the Georgian Finance Ministry, the excise tax rates on both local and imported filter cigarettes increased from 0.60 to 0.75 lari ($1 =1.66 lari), and on the non-filter cigarettes from 0.15 to 0.20 lari in line with amendments to the Tax Code of the country, which came into force on September 1, 2013.

The Finance Ministry reported that these changes are insignificant and do not pursue fiscal effect.

The growth of excise rates on tobacco products since September 1 is in line with a complex anti-smoking approach initiated by the governmental commission in an effort to establish a long-term strategy of strengthening control over tobacco in the country. The key objective is to reduce the harmful effects of smoking and social damage, as well as to bring the country closer to the norms specified in the Framework Convention on Tobacco Control. Increase of excise tax on tobacco products is one of the mechanisms to implement this strategy," the ministry said in its special statement.

The Georgian government led by Bidzina Ivanishvili announced a struggle against smoking in early spring and published its tightening measures against smokers. In late May, the Ministry of Labour, Health and Social Affairs developed a strategy to combat smoking, the main component of which is to increase the price of tobacco products.

Later on many shopping outlets in Georgia increased the price of cigarettes by an average of 0.20-0.30 lari. Cigarette prices went up a few days before the increase in excise duty. Enditem