JTI representative thinks that abrupt increase in excise duty for tobacco production in Georgia may entail tobacco smuggling from Armenia, Bizzone.info reports.

"Cigarettes currently cost less in Armenia now than in Georgia. For instance, Winston costs 90 cents in Armenia and USD1.2 in Georgia. After 25% increase in excise duty for tobacco production, the price difference will grow and it will enhance the risk of cigarette smuggling from Armenia which will cut off state budget revenues", Director for Corporate Affairs and Communication of JTI Tobacco International (JTI)- Caucasus Nikoloz Mchedlishvili thinks.

According to him, the excise duty for tobacco production should be increased step-by-step.

JTI already introduces a new TRACK & TRACE control system in its enterprises. In particular, a special bar code will be put on each batch of cigarettes which will allow the company and the controlling structures to monitor the process of transportation and  sale of cigarettes and this will help reveal counterfeit production.