Alapishvili also recalled several kinds of smuggling and told the BPI how the Authorities should prevent everyone.
“In don’t just our country, but all countries, some percent of revenues may miss their state budget and turn given to the illegal sector. It’s the government’s responsibility to minimize preventing similar threats. To that end, government entities should apply administration leverages, create due legislative environment and business environment, economic conditions for stimulating tax payment. Therefore, the us govenment should envisage all perils associated with smuggling, much more so excise tax is required to grow”, Alapishvili told the BPI.
Tobacco excise tax upturn may provoke firing employees in the commercial sector. Higher excise tax will cut revenues? and business companies will likely need to cut staff, Alapishvili noted.
All these 4 elements will provide side affects too in relation to distribution, advertising, imports for example. Almost all these issues must be resolved from a complex way.
I are going to be happy if our government cares for these aspects and doesn’t rely only on police bodies, because law enforcers may not be always successful within this direction”, Alapishvili noted.
In a reaction to the question whether smuggling prevention measures will be needing due money and revenues from higher excise tax could possibly be focused on smuggling prevention, Alapishvili said:
“I don’t think Government considers this trouble with this light. The recent statements claim that Government wants to fill the budget gap after profits tax reformation in 2017. This isn’t a sensible practice, because reforms need to be clear and evident from the beginning, carried out focused on specific directions and clear for our own citizens. Reforms without public support are destined to fail.
For example, if the Government had explained that increase excise tax on vehicles or property tax would improve road infrastructure, our citizens would receive clear messages, but Government does not look at this and consequently, I do believe the mobilized resources are going to fill their state budget gaps”, Alapishvili concluded.