Increase of tobacco prices might increase level of smuggling

From September 1, 2013 an excise payment for cigarettes will increase in Georgia. The analysts keep repeating that this might result in the increase of smuggled cigarettes from neighboring countries, in particular from Armenia. However, the Minister of Finance, Nodar Khaduri, denies such possibilities assuring people that the Georgian customs are well equipped to prevent such actions.

Analysts remember that in 2005, Georgia increased excise taxes on cigarettes, which resulted in the increase of illegal contraband cigarettes entering the country.