In Georgia, number of cases of production, storage, transportation and sales of tobacco without excise has dramatically increased. Based on the information provided by the investigation service of the Ministry of Finance of Georgia, in January-March 2016, 14 cases were registered. To compare with previous years: last year, total of 15 cases were revealed; in 2015 – 7 cases and only 2 cases in 2014.
In addition, in the first quarter of 2017, 14 470 boxes of cigarettes were seized and legal prosecution was initiated of 13 individuals.
As you would know, since 1st of January 2017, the excise tax for tobacco has increased. Excise has increased by 60 tetris for one box of filter cigarettes. It has also increased for non-filter cigarettes. As from the 1st of January 2017, tobacco importers and producers have to pay 30 tetris higher excise per box of cigarettes.
According to EU directive, after certain period of time (presumably 7-10 years), the excise tax for cigarettes in Georgia should reach at least 60% of weighted average retail price, but not less than 90 euros per 1000 cigarettes.
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