Controversy Over Proposed Tobacco Tax Reduction in Georgia

Regulations by 2FIRSTS.ai
Mar.11.2024
Controversy Over Proposed Tobacco Tax Reduction in Georgia
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). WHO official expresses disbelief over Georgia's plan to reduce tobacco tax, contradicting national policy.

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.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

UK PM Andy Burnham Reshapes Vape Retail Rules as Licensing Could Raise Barriers for New Shops
UK PM Andy Burnham Reshapes Vape Retail Rules as Licensing Could Raise Barriers for New Shops
UK Prime Minister Andy Burnham is pushing a high street reform agenda that could give local authorities greater powers over commercial activity, including vape retail. The reforms could involve expanded planning powers and a potential vape retail licensing system, allowing councils to play a larger role in store locations and market access. The measures are part of the UK’s broader shift toward tighter vape regulation, although no nationwide vape retail restrictions have yet been implemented.
Aug.11
China Discloses First Criminal Case Over Counterfeit Vapes Disguised as “Medical Nebulizers” and “Zero-Nicotine” Products
China Discloses First Criminal Case Over Counterfeit Vapes Disguised as “Medical Nebulizers” and “Zero-Nicotine” Products
Chinese authorities have disclosed the country’s first reported criminal case involving counterfeit vapes marketed as “medical nebulizers” and “zero-nicotine” products. Authorities determined that the products involved were counterfeit vapes and pursued criminal charges for producing and selling counterfeit goods. According to the report, the case resulted in the seizure of 347,000 counterfeit vape pods and 53,700 vape devices, with physical goods valued at 22.13 million yuan.
Aug.04
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-listed vape company iSpire Technology has restructured its leadership team, with Tuanfang Liu becoming the company’s sole chief executive officer (CEO) and Michael Wang appointed CEO of Aspire North America. The move ends iSpire’s previous co-CEO structure and creates clearer responsibilities between group strategy and regional execution. Separately, BTIG initiated coverage on iSpire Technology with a Buy rating and a $3.50 price target, identifying ODM growth opportunities as a key investment factor.
Jul.27
  South Korea Reopens Cigarette Tax Debate as 63% Back Higher Tobacco Taxes
South Korea Reopens Cigarette Tax Debate as 63% Back Higher Tobacco Taxes
South Korea’s cigarette tax debate has resurfaced after the Ministry of Health and Welfare said tobacco price policy needed review, with a poll showing 63% of respondents support higher tobacco taxes.
Regulations
Jun.22
BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs
BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs
UK retail publication Grocery Trader has published a viewpoint article from Tolga Kilic, Commercial Director for BAT UK & Ireland, discussing the impact of illicit nicotine products on legitimate retail channels. Kilic said illegal vapes and other illicit nicotine products create competitive pressure for compliant retailers and called for stronger market controls and supply-chain oversight. The comments come as the UK advances policies including the disposable vape ban and Vaping Products Duty, creating a more complex operating environment for legal vape retailers.
Jul.28
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
ITC Infotech has expanded its multi-year strategic technology partnership with British American Tobacco (BAT), providing technology services across Poland, Romania and India while continuing to support BAT's newly launched Future Capabilities Centre in India and existing technology hubs in Malaysia and Mexico. The companies said the agreement will focus on AI-enabled innovation, technology capability building and greater operational efficiency. The partnership also aligns with BAT's broader Fit2Win transformation programme, under which the group is expanding the use of external technology and business-services partners to simplify its global operating model.
Aug.13