New regulations in tobacco business

New regulations on tobacco business will come into force on September 1st, 2013. Tobacco will be treated as the luxury product and its excise taxes will thus increase by 15 tetris for the cigarettes with filters, and by 5 tetris – without the filter. These regulations are envisaged in the agreement concluded between Georgia and the EU. The officials of the Ministry of Finance say that the increase will take place gradually so that to protect the Georgian market from the smuggled foods. The ministry also considers that the increase of excise taxes will eventually increase the budgetary revenues on this product as well. It is also considered that this increase will be the certain step taken by the state against the habit of smoking.