Georgian Sock has refused to export products. The legislative gaps make sock exports unprofitable, the company director Zaza Janezashvili told the Business Contact.
If the products is not made of Georgian or European raw materials, the export is taxed by 12% duty. Georgia does not manufacture threads. European thread is expensive and grows the product’s prime cost, Janezashvili said.
“We wanted to export our products to EU. There are many similar enterprises in our region, while the EU market needs cheap products, but not of their expensive raw materials. The products made of Turkish raw materials is taxed by 12% duty and therefore, it is unreasonable to launch exports of our products”, the company director noted.