Controversy Over Proposed Tobacco Tax Reduction in Georgia

According to a report by Sputnik on March 10th, Kaha Gvinianidze, the coordinator of the non-communicable diseases program at the World Health Organization, expressed shock at Georgia's proposal to reduce the tobacco consumption tax from 60 Georgian lari (22.60 US dollars) to 30 Georgian lari (11.30 US dollars). Gvinianidze stated that this measure goes against the government's tobacco control policy implemented in 2021.

This violates the national tobacco control policy approved in 2021, the Framework Convention on Tobacco Control to which Georgia is a signatory, as well as Directive 283 of the association.

According to the initiative of David Songulashvili, Chair of the Parliamentary Economic Policy Committee, and other members, a bill has been registered in parliament aimed at reducing the tax rate on tobacco products from 60 Georgian Lari ($22.60) to 30 Georgian Lari ($11.30). Documents published on the parliament's website show that if the legislative initiative is passed, budget tax revenues will decrease.

However, the proposal has received support from the majority party members in Parliament, who claim that this will help stimulate industry development, increase market competitiveness, and reduce the importation of illegal tobacco.

Georgia and the European Union signed an agreement that includes a provision to increase tobacco taxes, with a commitment to fully implement it by 2022. However, this agreement has been extended until 2026.