Ruling party MP Nino Tsilosani says none of the food producers who testified before the Parliamentary Price Commission could clearly confirm that removing VAT would reduce the final price of their products. She emphasized that while all producers naturally want VAT exemptions, this tax is one of the main sources of state revenue that funds healthcare, education, preschools and public sector salaries.
Tsilosani noted she asked companies directly whether they would lower prices by 18% if VAT were removed, but no one gave a definitive “yes.” According to her, this indicates that VAT reduction alone would not necessarily translate into cheaper products for consumers.
She also highlighted that producers pointed to other major pricing pressures, including supermarket chain fees, cashbacks and additional charges, which in many cases exceed state taxes and contribute significantly to higher retail prices. Tsilosani said these issues would be addressed when representatives of major retail chains testify before the commission.
According to her, today’s public hearing made clear why the investigation into price formation was initiated, showing that price-reduction potential does exist. She added that whether prices actually decrease will depend on business decisions and the outcome of the commission’s work.
