Finance Minister Denies Cigarette Prices Will Hit 15 GEL

The Minister of Finance Ivane Machavariani has responded to reports about the possible increase of cigarette prices up to 15 GEL in Georgia, claiming that the information is incorrect. 

He explained that his statement made at the Parliament was misinterpreted.

“The information has been spread that cigarette prices in Georgia will coe to exceed 15 GEL, which is absolutely wrong. The Association Agreement with the European Union says that we must equal EU standards. The first deadline was the year 2022. Given the hard social situation, neighboring countries cannot follow these standards, so the deadline was prolonged until 2026. In addition, I am sure that we will further prolong this deadline in the future.

"We have very close communication with the sector representatives, explaining that no increase in taxes will occur in 2020-2021. Then we will communicate again and announce the two-year plan, and whether there will be an increase in prices or not. As for whether the price will be equalized with the EU standard in 2026, I think we will prolong the deadline and prices will be equalized when we enter the EU," Machavariani said.

By Ana Dumbadze