Cigarette Prices Rise by 0.5GEL

Cigarette prices in Georgia have risen by an average of 50 tetri in according with the new Tax Code that came into force on 1 January 2019.

Since 1 January, the excise tax on tobacco equates 1.70 Lari per 20 cigarettes. Filtered and non-filtered cigarettes are now taxed equally. Prior to the changes, the excise tax on non-filtered cigarettes was only 60 tetri.

Supporters of the Tax Code amendments hope that the increase excise tax on tobacco will reduce the number of smokers.

However, tobacco importers claim the price increase could increase the number of contraband cigarettes on the market. Although the head of the Parliament’s Health Committee Akaki Zoidze believes this is unlikely as contraband currently only accounts for less than one percent of tobacco products.

He hopes the tax will encourage smokers to quit. “The World Health Organization has certain calculations to save the lives of 35,000 people from early death over the next 15 years and [give] the country’s economy with 2.2 billion GEL (about $0.82billion/€0.72 billion)” he said.

The excise tax on cigarettes in Georiga was encouraged by the European Union.