Tax on cigarette goes high in Georgia

From September 1 Georgia increased tobacco excise taxes.

As the Georgian Finance Ministry reported on Monday, according to amendments to the Tax Code of the country which came into force on September 1, the rate of excise duty on filter cigarettes, both of local production and imported, increased from 0.60 to 0.75 lari ($1 =1.66 lari), and non-filter cigarettes from 0.15 to 0.20 lari.

According to Ministry of Finance, these changes are insignificant and are not designed for a fiscal effect.

'The increase in tobacco excise duty since September 1, 2013 corresponds to an integrated approach initiated by the government commission towards anti-smoking which is directed to establishing a long term strategy of strengthening control over tobacco in the country.

'The aim is to reduce the harmful effects from smoking and social damage, as well as bringing the country towards the norms stipulated by the Framework Convention on Tobacco Control. One of the mechanisms of implementation of this strategy is an increase in tobacco excise duty', the Ministry of Finance special statement reports.

Many outlets in Georgia had increased the price of cigarettes by an average of 0.20-0.30 lari. Cigarette prices went up a few days before the increase in excise duty.

Adapted from