24.Feb .2020 18:35

Finance Minister denies reports that tobacco price will increase to GEL 15

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Finance Minister Vano Machavariani denies reports that tobacco price will increase to GEL 15. As he told reporters, the excise tax on tobacco will not increase in the next two years.

“The report that tobacco price will be risen is not true. We had an obligation under the association agreement to equalize with EU rates. The first deadline for this is 2022. Given that neither the social situation is favorable nor our neighboring countries are raising rates, we had a negotiation over that and the deadline was extended for 2026. I am sure we will further extend this deadline.

We have very close communication with the business sector. We presented a two-year plan and promised them that the excise tax would not increase. At the end of 2022, we will again introduce a two-year plan. I think we have the space to further extend this deadline,” Machavariani said.