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Government: Tobacco Product Reserves Have Been Halved

According to the draft amendments to the Law of State Budget of 2017, tobacco product reserves have significantly decreased during the year in Georgia.

Specifically, the draft law states that in 2016, Georgia had average supply of 2 month, and in 2017 number has been halved and on average it is a monthly supply (30 mln gear).

Apart from this, according to the Government, due to changes in excise rates and increase in tobacco prices consumption of tobacco has been reduced significantly.

“In January-August, 2016, a total of 5,8 billion pieces of cigarettes were sold, and in January-August 2017 a total of 4,9 billion cigarettes were realized. Tobacco consumption in the current year (8 months data) has decreased by 900 million pieces, which is 15.5% reduction in consumption.

Due to the fact that consumption of tobacco will be reduced more than forecast number (8%).  Amounts Mobilized in the Budget as Excise Taxes will leg behind the 2017’s Forecast.

According to the amendments to the budget, the excise forecast indicator was defined in 2017 with the amount of 1 435.0 million GEL, which is 192 million less than the 2017 accrued plan.