Experts and cigarette importers expect that smuggled products will flood the market.
This is the market rule and increased excise tax will bring clear results, expert Irakli Nadareishvili said. Growth in cigarette excise tax will only deteriorate consumer conditions.
As reported, Prime Minister of Georgia has announced growth in tobacco products excise. Soon Minister of Finance specified that the rate would rise by 60 Tetri. In a year after introduction of 1.10+10% Ad Valorem tax, cigarette excise is about to grow again.
The Minister of Finance also talked about vehicle imports excise and announced 45 million effect. There is much difference between calculations by Dimitri Kumsishvili and Irakli Nadareishvili.
According to Nadareishvili, the state budget revenues will double if tobacco product excise tax grows by 20 Tetri.