Zviad Skhvitaridze: Regulations on E-cigarettes should Be Liberalized

“Together with the excise tax, regulations should be also liberalized on e-cigarettes”, British American Tobacco corporate director Zviad Skhvitaridze told BM.GE.

When delivering his speech at the Parliament of Georgia, Finance Minister Ivane Machavariani noted that certain difficulties exist regarding e-cigarettes.

Both excise tax and regulations should differ for tobacco  and nicotine-containing products, Zviad Skhvitaridze noted.

“Taxation regime should be different for ordinary tobacco products and nicotine containing products, because ordinary cigarettes burn and emit about 150 harmful substances, while nicotine-containing products such as evaporable liquids are less harmful by 97%. For example, our VIPE and VUSE emit less harmful substances compared to ordinary cigarettes.

Regulations and excise policy on heated and ordinary tobacco products are identical and this is inadmissible”, the British American Tobacco corporate director noted.

Taxation regimes are different in all countries, including in EU, he added.

“As for nicotine-containing liquid, the excise tax is different and low, compared to ordinary cigarettes. For example, our product GIo does not burn in the smoking process, but it is heated and only 9 harmful substances are emitted.

Seemingly, the Minister has implied that taxation regimes should be revised to improve environment in Georgia in this component, and introduce regulations practiced in EU in terms of imports of various alternative modern cigarette products.

Taxation regime and regulations should be revised. In case of cigarettes, advertising and promotion is forbidden and the same regulations should not apply to nicotine-containing products. Nicotine-containing products are less harmful by 97% and this excise tax is applied to products with excessive danger. Therefore, the more threat, the higher excise tax should be and the reverse.

Together with the excise tax, regulations should be also liberalized for e-cigarettes”, Zviad Skhvitaridze noted.