Georgian Prime Minister Irakli Kobakhidze has dismissed calls to reduce excise tax on fuel, describing such proposals as “absolutely speculative” and arguing that tax revenues ultimately serve the public.
Responding to journalists’ questions about rising prices of food products and fuel in Georgia, Kobakhidze claimed that, according to official data, no price increases were recorded in October.
Asked when the government would deliver on its promise, made last year, to reduce food prices, amid public complaints about the rising cost of everyday goods, including food and meat, the Prime Minister referred to official statistics.
“You can look at the statistics on prices for food and non-alcoholic beverages. Fuel is a separate issue, as global fuel prices have increased. As for food and non-alcoholic beverages, you can examine the figures dating back to February, and then we can discuss the matter,” Kobakhidze said.
When a journalist pointed out that the latest data from the National Statistics Office of Georgia (Geostat) also indicated price increases, Kobakhidze rejected the claim.
“That is a lie, because the figure recorded is exactly zero,” he said.
Journalists also asked the Prime Minister about rising fuel prices and the possibility of reducing the excise tax on fuel to ease the financial burden on consumers.
Kobakhidze said that the increase in fuel prices was part of a global trend and argued that reducing the tax would not have a significant impact on prices.
“As for fuel, this is a global problem. No matter how much you reduce the tax, it will not have a radical impact on prices, given that the tax does not account for a large markup per litre. Moreover, taxes go into the state budget and ultimately benefit the people. That is why the statements being made about the excise tax are absolutely speculative,” Kobakhidze said.
