Cigarette prices have already increased in Tbilisi retail sector.
Suppliers deliver cigarettes to stores with increased tariffs. Prices have surged by 10-30 Tetri on average. Tobacco importers noted that they had to increase tariffs because of GEL exchange rate and inflation factors. At the same time, starting January tobacco product prices are expected to rise further.
We remind you that under the government’s decision starting January 1, 2017 cigarette excise tax per pack will rise by 60 Tetri. This signifies that cigarette prices will increase by at least 0.80-1.00 GEL. Since AD Valorem tax runs on cigarettes, importers expect further upturn in prices if the GEL exchange rate continues collapsing.