In a decisive stance, the United Nations in Georgia has voiced serious concerns over the proposed amendments to the Tax Code of Georgia concerning tobacco excise tax. The draft law, aimed at reducing taxes on certain tobacco products, has sparked a debate over its potential impact on public health and the economy.
Public Health at Stake
The UN’s statement underscores the potential reversal of progress made in tobacco control within Georgia. The proposed tax cuts threaten to increase tobacco consumption, given the affordability of cheaper tobacco products, thereby endangering the health of the Georgian population. The UN highlights the dire statistics: a third of Georgians use tobacco, leading to healthcare costs and economic losses amounting to more than 800 million GEL annually, which is a staggering 2.4% of the nation’s GDP.
Economic Implications
The economic ramifications of the draft law are equally concerning. The UN’s research, in collaboration with the Georgian government, suggests that increasing tobacco taxes could prevent up to 2.2 billion GEL in economic losses and healthcare costs over 15 years. The proposed tax cuts, therefore, represent not only a health risk but also a potential economic setback for Georgia.
Contradiction to National and International Commitments
The draft law stands in stark contrast to Georgia’s commitments to reduce tobacco use, aligning with international best practices and obligations such as the Framework Convention on Tobacco Control. The UN warns that the proposed changes could undermine Georgia’s aspirations for EU accession, distancing the nation from its policy goals and international responsibilities.
