According to the Acting Minister of Finance, Ivane Machavariani, there is a problem with tobacco smuggling, but this does not mean that Georgia will abandon the EU guide.
Due to the increase in excise tax, cigarette prices have risen sharply in Georgia. As a result, the import of smuggled goods has increased. The Revenue and Investigation Services spread information about the removal of excise-free cigarettes at the customs point.
Machavariani thinks that the increase in tobacco excise price was the right decision, and the numbers confirm this.
"We also have active communication with tobacco producers and importers. The promise to inform each other of the next 2 years' plans is valid and is being fulfilled. In general, we have a deadline for how to approach the excise rates that the EU has. As for increased smuggling, there is a problem with this, but it does not mean that we should abandon the EU guide. It means that we should protect our borders more and that the Revenue and Investigation Services should work harder, which is what they are doing.
However, even though we have increased the excise tax, which has led to smuggling pressure, we had entered a record amount from the budget in 2019. This year, the excise tax is one of those tax revenue positions that has not been affected, and we have no reduction. Despite all these talks, the decision was the right one, the numbers confirm it, and we will actively and transparently cooperate with this sector in the future," Machavariani said.
