Georgian Parliament Speaker Shalva Papuashvili stated that high food prices are not linked to VAT, which has remained unchanged for years.
Addressing the issue at a press conference, Papuashvili emphasized that the market alone cannot regulate all price fluctuations, a structural limitation of a market economy. He noted that in some cases, regulation or enforcement is necessary to ensure fair pricing.
Starting in February, a special parliamentary commission will investigate how food prices are formed. Papuashvili explained that the inquiry will be an open, public process involving the executive branch, market participants, and civil society. The goal is to trace the price chain—from import or production costs to transportation, customs, and the final retail price—to identify unjustified markups and potential cartel practices.
“Any attempts to blame VAT or regulations for high prices are unfounded. Now we need to determine whether the price increases are natural market outcomes or the result of excessive profits and potential collusion,” he said.
