George Bakhturidze Georgia

George Bakhturidze Georgia

During 1998-2003 tobacco tax rate was very low, but illicit cigarettes represented around 70% of the market, because of corruption;

In 2004 the new government made reforms and decreased the level of corruption; illicit cigarettes market share went down to about 10%; Since 2005 tobacco excise tax has been increasing substantially, but the share of illicit cigarettes did not change.

Tobacco tax revenue went up.